Diageo, the world's largest distiller, is to buy a 53.4% stake in Indian drinks manufacturer United Spirits in a deal worth $2 billion.
Diageo will acquire a 27.4% stake in United Spirits for 1,440 rupees ($26.32) a share, or $1.05 billion, and make a tender offer for another 26%.
Diageo, whose brands include Johnnie Walker, Smirnoff and Guinness, has been seeking access to India's fast-growing alcohol market.
United Spirits is controlled by Indian entrepreneur Vijay Mallya, who needs money to shore up his Kingfisher Airlines, which has been teetering near bankruptcy.
Diageo says Mallya will remain chairman of United Spirits.
