LONDON -(Dow Jones)- Global drinks giant Diageo PLC (DEO) said Tuesday long-running talks to buy a stake in India’s United Spirits Ltd. (532432.BY) have collapsed on a disagreement over the company’s valuation.

“It hasn’t proved possible for Diageo to resolve points of difference between the two parties, principally valuation,” the U.K.-based company said in statement.

Diageo said it remains confident about the long-term prospects of the Indian market and will continue to pursue its own brands’ potential in the country.

Earlier Tuesday, United Breweries Ltd. (532478.BY) Chief Financial Officer Ravi Nedungadi told Dow Jones Newswires the Indian company wasn’t talking to anyone else about possible investments.

United Spirits, a part of the United Breweries Ltd., headed by Vijay Mallya, sells spirits such as McDowell’s No. 1, Royal Challenge and Antiquity. Diageo meanwhile is the world’s largest spirits maker with brands such as Johnnie Walker whisky, Smirnoff vodka and Gordon’s gin.

-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@dowjones.com

(Rumman Ahmed in Bangalore contributed to this article.)