India’s United Spirits has reportedly launched the process of appointing investment bankers for the sale of its Whyte & Mackay (W&M) Scotch whisky brands.
The board of United, in which Diageo – the world’s largest distiller – has a controlling stake, is expected to meet soon to decide who it wants to help it sell the W&M business.
It comes after the UK’s Office of Fair Trading (OFT) expressed competition concerns about Diageo taking control of United in a £1.3billion deal.
Reports in India yesterday said investment bankers such as the Citigroup, Bank of America Merrill Lynch, JP Morgan and UBS had already made their initial pitches to United in the hope of playing a role in the disposal of W&M. United said its board had met to discuss the OFT’s comments but it was premature to speculate on its likely next steps.
Indian billionaire Vijay Mallya and his United group acquired W&M in May 2008 for £595million.
Diageo inherited the W&M brands to its portfolio through its controlling stake in United, acquired earlier this year.
But the UK drink giant is willing to offload some of the W&M assets to satisfy the OFT, which has said retailers are concerned about possible price rises for bottled, blended whisky sold in the UK as a result of the tie-up.
A malt whisky distillery at Fettercairn and grain operation at Invergordon could both be sold, Diageo said.
The group has also named a distillery on Jura among parts of the W&M business it could offload. Diageo said W&M’s Dalmore and Tamnavulin distilleries, which supply United and primary international markets, would be retained.
Last week, South African entrepreneur Vivian Imerman – once dubbed the man from Del Monte after leading a turnaround at tinned fruit company – said he was interested in buying back Glasgow-based W&M. Mr Imerman controlled the whisky firm, alongside business partner Robert Tchenguiz, from 2005-08.