Both the companies are in the process of giving final shape to the deal. "We are working out the final cost of the brand and the date for handing it over to the UB group," a company official said. The whole process is expected to be completed within a month.

The deal was finalised after three months of negotiations between the two companies.

Sources in Millennium Alcobev also confirmed the deal and said it was part of Millennium's brand portfolio expansion plan.

Black Knight brand has a strong regional presence in north. Mohan Meakins was planning to sell this brand for quite some time. The company was engaged in talks with some other liquor majors as well, but settled for Millennium Alcobev as its offer was the most attractive, a company official said.

Millennium Alcobev was set up by the UB group in partnership with former Shaw Wallace managing director Ravi Jain. UB group holds 60 per cent stake in the company while, Mr Jain holds 26 per cent. The balance is held by other parties.

Millennium Alcobev, which currently has a presence in the beer market, is planning to enter other segments like whiskey, rum and vodka. The company plans to foray into these segments to have products in all ranges, and position them against Shaw Wallace.

Even after Millennium Alcobev buys the Black Knight brand, the whiskey will continue to be manufactured at Mohan Meakins manufacturing unit. The company already has a production-sharing arrangement with Mohan Meakins. As per the existing agreement, it will be using four units of Mohan Meakins to bottle its products.

The other popular brand from Mohan Meakins is Old Monk rum which falls in the regular rum segment and has a steady market.