Diageo Set to Re-evaluate Stake in RCB Amid Business Revamp
Diageo, owner of the Royal Challengers Bengaluru, reveals plans for a strategic review of its investment. This decision could lead to a potential sale as Diageo grapples with pressures in its core beverage business. The team recently celebrated winning both IPL and WPL titles.
- Country:
- India
Diageo, the parent company of the Royal Challengers Bengaluru franchise, announced a strategic review of its investment in RCB. This signals a potential divestment as it reassesses its non-core assets amid pressures in its global beverage market operations.
In a filing with India's Securities and Exchange Board, Diageo indicated the review is set to be concluded by March 31 next year. RCB has been a critical asset for Diageo's subsidiary, United Spirits Ltd, yet its alignment with the core alcoholic beverage business has become non-essential, explained United Spirits CEO, Praveen Someshwar.
The timing of the review coincides with Diageo's struggle in its main business and follows mounting speculation about a sale post-IPL's recent victory celebrations. Despite the financial implications of a potential sale, the team is anticipated to continue its preparations for upcoming IPL and WPL seasons unabated.
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