Diageo subsidiary United Spirits Limited (USL) has agreed to sell its 100% stake in Indian Twenty20 cricket team Royal Challengers Bengaluru for 1.7bn Indian rupees, worth around £1.4bn.
Concluding a strategic review announced in November 2025, the sale will see USL sell Royal Challengers Sports Private Limited to a consortium of Aditya Birla Group – one of India’s largest conglomorates – The Times of India, Bolt, and private equity firm Blackstone.
The consortium will thus acquire the rights to own and operate the Indian Premier League and Women’s Premier League franchises of the Royal Challengers Bengaluru teams, which are among the most prominent and commercially successful teams of their leagues.
“The disposal comes as no surprise,” said RBC analyst James Edwardes Jones, who expected completion within around six months given the need for regulatory approval.
The proceeds will likely knock 0.1x off Diageo’s net debt/EBITDA ratio, and in combination with the disposal of its East African Breweries business should push net debt/EBITDA below 3x at June 2026, compared with RBC’s forecast of 3.25x.
Diageo’s USL subsidiary has held steady results, reporting 7.3% revenue growth in Q3 2026 alongside an 11.8% boost to profits.
Last month, new Diageo boss Dave Lewis revealed the extent of the spirits company’s woes, with a 4% drop in revenues in the first half far exceeding market estimates.
Weak performance in North America and China led the company to slash its shareholder dividend and downgrade profit expectations.
Lewis has signalled his intention to make Diageo more competitive with selective price cuts.
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