Dive Summary:
- Diageo is expected to update shareholders Friday as it faces challenges acquiring a majority share in India's United Spirits (USL).
- After acquiring a 27.4% stake in the company in November, Diageo was expected to present shareholders with a an offer that would see it take an additional 26% stake.
- Ross Colbert, an analyst at Rabobank, believes that Diageo's situation is symptomatic of the "opportunities and challenges in emerging markets" that companies are facing right now as competition concerns potentially stand in the way while Indian spirits consumption grew almost 80% from 2006-2011.
From the article:
The potential upsides in Diageo’s potential acquisition of a majority stake in India's United Spirits (USL) are clear but achieving acceptable profitability from the business may be tricky, according to one analyst. ...