DIAGEO acquired a further 3,310,515 shares or approximately 0.46 per cent shareholding in India’s United Spirits Limited (USL) at a per-share price of Rs 591.95 (£6.78).
The shares were bought on the Bombay Stock Exchange (BSE) taking the British alcoholic beverages company’s controlling shareholding position to 55.2 per cent in USL.
USL is a highly strategic asset for Diageo and positions the company to capitalise on opportunities within India, one of the major growth markets in the world for total beverage alcohol.
During Diageo’s fiscal 2019, USL’s organic net sales increased eight per cent, with ‘Prestige and Above’ segment growing 12 per cent, led by the double digit growth in Scotch.
“The business continues to make significant progress on operating margin, which is now in the mid-teens, and is underpinned by a focus on everyday efficiency and investment in capabilities, technology, and process improvement across the business,” the beverage giant said.
Diageo recently announced the creation of a joint venture, Ron Santiago SA, between a European Diageo subsidiary and Corporación Cuba Ron SA, a leader in the production of premium Cuban rums.
The Diageo subsidiary and state company Cuba Ron will be equal partners in Santiago SA.
The joint venture will have exclusive global distribution rights to Santiago de CubaTM, a premium Cuban heritage rum brand.