United Spirits Limited (USL), an Indian spirits company, is likely to sell its Scottish grain whiskey distillery Invergordon, which it acquired under $1.18bn Whyte & Mackay acquisition in 2007.
Invergordon has an annual production capacity of 40 million liters.
However, the Office of Fair Trade in UK, after reviewing the recent acquisition of USL by Diageo, raised concerns that the combined grain whiskey distillation would violate competition laws, reported The Times of India.
Diageo already owns Cameronbridge, which has an annual capacity of 140 million liters, besides owning a 50% stake in North British Distillery, which has 60 million-liter capacity.
Whyte & Mackay owns five distilleries in Scotland, including Dalmore, Old Fettercairn, Isle of Jura, Tamnavulin and Invergordon.
Among these distilleries, only Invergordon is a grain whiskey distillery, while others are malt distilleries.
According to drinks industry analysts, Diageo might start divesting Whyte & Mackay brands, which are against the long-term interests of the company.
