Mumbai, Feb 22 - India's UB group has started due diligence for Scottish spirits maker Whyte & Mackay and is likely to complete the process soon, a spokeswoman said on Thursday.
Some local media reports said UB Chairman Vijay Mallya was in Scotland and a deal was likely to be struck at 500-550 million pounds ($977 million-$1.08 billion) within a fortnight.
Whyte & Mackay Chairman Vivian Imerman said last year the Scottish company was valued at 600 million pounds, and that the firm was in talks with UB and others for a sale of a part of the business, the whole of the business or a strategic alliance.
United Spirits Ltd., the world's number three spirits maker, is keen to add brands such as Whyte & Mackay blended scotch, Isle of Jura and Dalmore single malts to its portfolio as it fights an aggressive Diageo Plc in India.
United Spirits, which had sales of 60 million cases in 2005/06, has nearly half the Indian market for branded spirits.
Group firm United Breweries Ltd. is India's dominant brewer with its flagship Kingfisher beer, and the UB group last year acquired France's Bouvet Ladubay to tap the growing market for wines in India.
UB is facing growing competition from the world's top drinks maker Diageo, which plans to launch several premium whisky brands in India, while also tapping the dominant mid-price segment through its joint venture with Radico Khaitan Ltd..
A proposed duty cut on imported spirits and wines would give Diageo an edge in the high-margin premium segment, an advantage UB hopes to counter with a successful bid for Whyte & Mackay.