![\"Diageo](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/06\/iStock-1255328634-640x427.jpg\")
<\/p>\nDiageo has agreed to sell its controlling stake in Indian Premier League franchise Royal Challengers Bangalore to an investor consortium led by Blackstone and Aditya Birla interests. The US$1.78 billion deal marks another major step in the drinks group\u2019s strategy to dispose of non-core assets and reduce debt.<\/p>\n
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As previewed by the drinks business<\/a>, Diageo has agreed to sell its stake in the Indian Premier League (IPL) franchise Royal Challengers Bangalore to an investor group for $1.78 billion.<\/p>\n The winning bidders include US private equity giant Blackstone and US sports investor David Blitzer, the only entrepreneur to hold a stake in all five American major sports leagues. It will be chaired by Aryaman Birla, through his Aditya Birla conglomerate and includes The Times of India Group.<\/p>\n The IPL has become one of the world\u2019s most prestigious and valuable sporting competitions and includes Asia\u2019s richest man, Mukesh Ambani, and Bollywood billionaire Shah Rukh Khan among its franchise owners.<\/p>\n Rival bidders defeated<\/p>\n The chosen bidder saw off rivals, including the Glazer family, who control Manchester United, Manipal Hospitals\u2019 Dr Ranjan Pai, in concert with US private equity firm KKR and Singapore investment group Temasek. A third contender was Swedish private equity firm EQT and the finance vehicle of Azim Premji, the Indian multi-billionaire.<\/p>\n Initially eight potential bidders are thought to have shown interest in the franchise.<\/p>\n Franchise growth and IPL media boom<\/p>\n Diageo acquired its stake in Royal Challengers Bangalore as part of its takeover of India\u2019s United Spirits from Vijay Mallya in 2012. The team, which has high-profile global support, won both the men\u2019s and women\u2019s championships last year and increased its revenues by more than 70%. The deal also includes ownership of the women\u2019s team.<\/p>\n Media rights to the competition, which has a global audience, have grown more than sixfold to $5.4 billion since the IPL\u2019s inauguration in 2008.<\/p>\n Regulatory approval expected<\/p>\n The deal is subject to approval by India\u2019s competition authorities and its cricket board of control but no obstacle is expected provided the winning bidders drop their offer to takeover rival franchise Rajasthan Royals.<\/p>\n When added to the $2.3 billion Diageo<\/a> will receive from the sale of a controlling stake in East African Breweries to Asahi, Diageo will have raised more than $4 billion from non-core activities to reduce its debts, a central plank of new chief executive Sir Dave Lewis\u2019 plans.<\/p>\n United Spirits\u2019 chief executive, Praveen Someshwar, said: \u201cRCB has grown into the most prominent and commercially successful franchise in the IPL and WPL.\u201d<\/p>\n However, the transaction meant Diageo\u2019s Indian subsidiary group could \u201csharpen focus\u201d on its core alcohol business.<\/p>\n Strategy update expected in May<\/p>\n The decision to dispose of non-core assets had been taken by the Diageo board before Lewis joined on January 1. He is expected to tell shareholders in May details of his strategy to revive the drinks giant\u2019s fortunes. They are expected to include further concentration on cash flow and possible other disposals to reduce debt.<\/p>\n The name Royal Challengers was given to the Bangalore franchise to support United Spirits\u2019 leading brand of Indian whiskey. The team will retain that throughout the coming season, which begins next week, but whether the new owners will seek a costly rebranding for future years is an open question.<\/p>\n Related news<\/p>\n \n \n
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