France said on Wednesday it would be too happy to see Indian liquor baron Vijay Mallya become a major player in the French champagne industry, but for that to happen he needs to outsmart competition.
"We would be happy to see Mallya take a position in the French champagne industry. If he is able to make a successful
bid, we would welcome it," French Ambassador to India Dominique Girard told PTI on the sidelines of a function in New Delhi on Tuesday.
Mallya, whose United Breweries is the world's third largest spirits maker, has plans to acquire French winemaker
Bouvet-Ladubay, a subsidiary of Taittinger, for Rs 67.5 crore (Rs 675 million).
Only last month, the liquor baron had opted out of a race to acquire Champagne Taittinger after local groups resisted
his bid. The famous champagne maker was finally sold to a French regional bank for $849
million.
"Whatever adverse reactions to the bid by Mallya for Taittinger were business reactions. The French government has,
in fact, welcomed Mallya's initiatives as he is considered a sound investor for the country.
"But the question is whether you are able to successfully address the competition by other bidders," Girard said, adding, "In a capitalist set-up, it was the market which would utimately decide what way things end".
UB Group is expected to seal the deal for Bouvet-Ladubay in the next few weeks. The acquisition would enable UB to have access to high quality premium wine, which it will be able to sell in the Indian market.
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