Thursday, November 29, 2007

Shaw Wallace to merge with UB Group

The Rs 4,000 crore United Spirits will be merging Shaw Wallace with itself. United Spirits, a part of the UB Group, had acquired Shaw Wallace for around Rs 1,300 crore in mid-2005 .

UB Group President and Chief Financial Officer Ravi Nedungadi said that the merger would begin soon. The move will add another Rs 60 crore to United Spirits’ bottomline of close to Rs 500 crore and around Rs 350 crore to the topline.He also said that Whyte & Mackay, which was recently acquired for around $1.2 billion, would stay on as a subsidiary.

United Spirits is currently the third-largest distiller in the world with sales of over 66 million cases powered by 15 millionaire brands. Brands from Shaw Wallace, which operate in the volume segment, have contributed to this growth.

Read more in The Business Standard article.

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