India: Mallya strengthens presence in Europe by biding to acquire Taittinger
Aiming to reduce the gap between his group and the world's largest spirit company Diageo, UB group chief Mr Vijay Mallya said May 23 that he has made a bid to acquire European brewery Taittinger for nearly Rs 3,000 crore.
Mr Mallya, whose UB Group emerged as the second-largest spirits producer in the world, said that he has also zeroed in on a South African winery that would give an edge to his group in the African continent.
He said the acquisitions would give him a crucial network and distribution channel in these continents where he had a restricted presence.
"Taittinger has got a huge distribution channel in France, all over Europe... I can sell United Spirit products using that distribution channel," Mr Mallya said, adding the valuation was close to around Rs 3,000 crore.
About Six bidders had been shortlisted for Taittinger buyout and market sources have said Mr Mallya's bid was the highest.
US-based Starwood Capital which had acquired Taittinger last year, plans to sell the company, globally selling around 4.5 billion bottles of champagne and wine a year.
About the South African acquisition, Mr Mallya said he had studied the market and zeroed in on a winery there.
"The South African acquisition makes a lot of sense as we know the market there. We have a big brewery company. We know the distribution network and this acquisition will be an added advantage to me," Mr Mallya said, adding discussions were going on.
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