The deal is worth 430 million pounds (about $727 million).
Several suitors have expressed interest in the sale process including a former chairman of the scotch-maker.
The company started addressing competition concerns which happed after the Diageo's acquisition of a 28.78% stake in USL, which included all the five distilleries owned by W&M and the enterprise value of 430 million pounds ($727 million) includes the company's current debt and its pension benefits.
W&M was bought in 2009 by USL chairman Vijay Mallya for 595 million pounds. The acquisition has allowed USL an access to large scotch reserves for its blended whiskies. Analysts are hopeful that the sale will lower USL debt, which was Rs 7,579 crore in the December quarter.
"United Spirits UK has approved the sale and entered into the share sale and purchase agreement with Emperador UK and Emperador," the company said in a communication to stock exchanges. The deal includes an agreement that W&M would continue supplying scotch to USL for three years.
"The sale is subject to necessary Indian and UK regulatory approvals and shareholder approvals, including an approval by the Reserve Bank of India since the sale will result in a significant write down of loan amounts recoverable by the company from its overseas subsidiary," Emperador, owned by the Alliance Global Group, said in a statement.
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