UB to buy French wine firm

Over a fortnight after it opted out of the race to acquire Champagne Taittinger of France, Vijay Mallya-controlled UB Group is now looking to buyout the French brewer's wine company for $15 million (Rs 68 crore).

Mallya on Friday said UB Group was looking to acquire a "small portion" of the Taittinger Group - a wine company in France.

"We are looking to acquire this company over the next few weeks," he said on the sidelines of CII-organised 'The India Innovation Summit 2006'.

"The reason (for the acquisition) is to get high quality wines which we will import and sell in Indian market."  Asked if UB is still in the race for acquiring champagne assets of Taittinger, Mallya replied in the negative.

"We bid but (French bank) Credit Agricole was the winning bidder. There is a sentiment that champagne assets should remain in French hands. So, we gracefully bowed out of the process. I am not prepared to get into a bidding war because that would have diluted shareholder value of United Spirits. That was something I was not prepared to do," he said.

Mallya said the proposed acquisition of Taittinger's wine assets in France would also give UB access to wine technology of the highest order, which it will use to develop in its own vineyards and wineries in India in a proper and sustainable form.

"It is a small acquisition costing approximately $15 million which would be funded out of the company cash flows," he said.