19 December 2012 Last updated at 03:38 ET

Whyte and Mackay celebrates a rise in profits

The deal which would give Diageo a majority stake in United Spirits is due to be completed next year

Scotch whisky firm, Whyte and Mackay, caught up in a takeover deal, has increased profits by 24% to £15.4m.

Turnover at the group for the year to the end March 2012 jumped by more than 35% to £229.8m.

UK drinks giant Diageo is buying a majority stake in Whyte and Mackay's owner, United Spirits for £1.28bn.

The deal could well come under scrutiny from the competition authorities because Diageo is already Scotland's largest distiller.

It is due to be completed early next year.

Diageo owns the Johnnie Walker and Bell's brands.

As well as the Whyte and Mackay labels, the Glasgow-based company holds the Jura and Dalmore brands as well as the liqueur Glayva.

United Spirits which is part of Indian businessman, Vijay Mallya's empire, bought Whyte and Mackay in 2007 for £595m.

The Indian company announced it was selling a stake in the Scottish firm after struggling with debts of hundreds of millions of pounds.