However, both parties have warned the talks may not lead to a deal.

United Spirits is the Indian drinks company controlled by Vijay Mallya. Mallya also founded troubled airline Kingfisher.

The joint statement from United Spirits and Diageo confirms “that Diageo plc is in discussion with United Spirits Limited and United Breweries (Holdings) Limited in respect of possible transactions for Diageo plc to acquire an interest in United Spirits Limited. However there is no certainty that these discussions will lead to a transaction.”