Diageo Nears Jose Cuervo Deal

by InvestorPlace Staff | August 20, 2012 11:00 am

Global spirits giant Diageo (NYSE:DEO[1]) has entered advanced talks with Mexico’s Beckmann family over plans to purchase popular tequila franchise Jose Cuervo for about $3 billion.

Diageo, which already handles Jose Cuervo’s international distribution, could announce the purchase Thursday when it is scheduled to report quarterly earnings. However, according to The Telegraph[2], some expect talks to extend well into September.

Diageo, whose products include Johnnie Walker scotch, Captain Morgan rum and Tanqueray gin, also is in talks about purchasing a major share of Indian alcohol manufacturer United Spirits, according to The Telegraph.

DEO shares were trading mostly flat Monday, but have gained more than 20% year-to-date.

Ryan Hauck, InvestorPlace

Endnotes:
  1. DEO: http://studio-5.financialcontent.com/investplace/quote?Symbol=DEO
  2. The Telegraph: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9486386/Diageo-close-to-3bn-deal-for-Jose-Cuervo-tequila.html

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