In May this year Mallya was pipped to the post for Taittinger itself, (which was put on the block by Starwood Capital) by Credit Agricole. At the time concerns over an Indian company owning a leading champagne brand had been aired in France and this may have played a role in MallyaÆs deciding not to bid higher although UB stated the reason for it dropping out of the auction was valuation-driven. It would seem Mallya was unfazed by the rejection and just a month later has acquired Bouvet-Ladubay.
Mallya is known for being a shrewd businessman who does not allow himself to get into bidding wars. In late 2005 when one of IndiaÆs two largest private sector airlines, Air Sahara (Jet Airways is the other) came on the block it was widely assumed he would be the most aggressive in bidding as it would have given a kickstart to MallyaÆs Kingfisher Airlines which he launched in May, 2005. However, Mallya put in a bid lower then eventual winner, Jet Airways. Many in the industry now feel that Jet will have a difficult time creating value at the price it paid and Mallya was wise to bid prudently. Earlier in March 2005 Mallya consummated the acquisition of Shaw Wallace for more then $300 million, a target it had been interested in for a long time; the acquisition made UB one of the leading worldwide players in liquor. UB was also in the fray for Invergordon Distillers, part of Whyte & Mackay.
Mallya is widely considered to be IndiaÆs Richard Branson for his flamboyant personality and for imprinting this stamp on the businesses he runs. His best known brand is Kingfisher Beer, IndiaÆs largest selling beer, available in 52 countries across the globe. It is estimated that 6 bottles of Kingfisher are sold every second in India. Mallya has a joint venture with Scottish and Newcastle and is aiming to increase KingfisherÆs penetration outside India.
Commenting on the acquisition Mallya said: "It will enable United Breweries to get into high quality premium wine which we will import and sell in (the) Indian market. It will also give us access to wine technology of the highest order." As in China, wine is the preferred tipple among IndiaÆs new generation of drinkers.
The asset was acquired from Starwood.
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