Diageo-United Spirits deal biggest inbound M&A in 2012

New Delhi: UK-based Diageo’s acquisition of 53.4 percent stake in Vijay Mallya-led United Spirits for Rs 11,166.5 crore ($2 billion) could be the biggest inbound M&A deal so far this year. Some of the major inbound deals – wherein a foreign company or its subsidiary had acquired an Indian entity – in the past, includes BP’s $9 billion acquisition of Reliance Industries’ oil & gas assets and the acquisition of Cairn India by NRI billionaire Anil Agarwal led-Vedanta Resources for over $8 billion. The United Kingdom has been one of the top acquirers of Indian assets over the years as another most prominent inbound deal also involved a UK entity – Vodafone Group. It acquired Essar’s stake in Vodafone Essar for $5 billion. [caption id=“attachment_520936” align=“alignleft” width=“380”] Vijay Mallya. Reuters[/caption] Other key inbound transactions include Japanese drug major Daiichi Sankyo Company’s acquisition of majority stake in Ranbaxy Laboratories Ltd for up to $4.6 billion and US-based Abbott’s acquisition of Piramal Healthcare’s domestic formulation business for $3.72 billion. Commenting on the deal Deloitte India Leader, Financial Advisory Avinash Gupta said, “This is most likely the largest inbound deal so far this year but it is not a trend and it does not signify that many more such inbound deals are likely to happen. This is just a unique situation where a deal has happened.” World’s largest spirits maker Diageo Plc today announced it will acquire 53.4 percent stake in United Spirits for Rs 11,166.5 crore in a multi-structured deal, which may provide Vijay Mallya a breather from troubles emanating from the grounded Kingfisher Airlines. PTI