Mallya buys Taittinger's wine arm

Liquor baron Vijay Mallya is believed to have acquired Bouvet-Ladubay, the wine subsidiary of French champagne major Taittinger for $15 million.

The deal, expected to be signed soon, will enable UB's spirits subsidiary, United Spirits Ltd, to get into premium wines, sources told PTI.

When contacted, a UB spokesperson said, "We have made a bid for Bouvet-Ladubay. But at this point of time, we are making no further comments."

Earlier, UB had made a bid to acquire Champege Taittinger for Rs 3000 crore (Rs 30 billion) but US private equity firm Starwood Capital, which bought the European champagne major last year from its French promoters, sold it to Credit Agricole backed by the Taittinger family.

However, it decided to sell the wine subsidiary separately. Founded in 1851, Bouvet-Ladubay, which is described as one of the most respected wine-producing firms in Europe, is located in the French Loire Valley region.

In a bid to foray into the growing wine market in the sub-continent, UB Group plans to import Bouvet-Ladubay's range of wines with the acquisition.

"We will use its technology to develop our own vineyards and wineries in India, for a sustainable growth and leverage our leadership in the spirits market," UB Group Chairman Vijay Mallya has said.

Last year, UB Group had acquired Shaw Wallace for $354 million, which made the Indian liquor major the world's second largest spirits group.