United Spirits-Diageo deal comes under UK regulator's lens

Britain's competition regulator said on Monday that it would investigate whether drinks group Diageo's purchase of a stake in United Spirits Ltd would have a detrimental impact on the spirits market.

The main area of concern is likely to be centred on United Spirit's Whyte & Mackay whisky brand, because Diageo is the world's biggest scotch company.

The Johnnie Walker and Guinness owner acquired a 25 per cent stake in the Indian group controlled by tycoon Vijay Mallya earlier this year.

The British company had wanted to take control of more than half of the group's equity when it announced a deal in November 2012. The Office of Fair Trading said any representations should be made by August 2.

Copyright: Thomson Reuters 2013