0804 GMT - The sale of Indian cricket franchise Royal Challengers Bengaluru for roughly $1.8 billion will help U.K. drinks giant Diageo reduce debt, RBC Capital Markets analysts say in a research note. The deal between Diageo's 55.9%-owned subsidiary United Spirits and a Blackstone-backed consortium comes as no surprise, and the price is in line with expectations, according to RBC. If USL hangs onto the sale process, Diageo's net debt-to-Ebitda ratio would fall by around 0.2 times, but it seems more likely the subsidiary will declare a special dividend and Diageo would get its 55.9% share, the analysts say. If a special dividend is declared, Diageo's net debt-to-Ebitda ratio would fall by 0.1 times, the analysts estimate. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 04:05 ET (08:05 GMT)

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