3rd Nov 2014 06:33
LONDON (Alliance News) - Diageo PLC is understood to be nearing an asset-swap deal with Mexican tequila company Jose Cuervo which would give the UK company full ownership of a fast-growing tequila brand in exchange for its Bushmills whiskey brand, The Wall Street Journal reported Saturday.
The pair are in advanced talks for a deal which would give Diageo the remaining 50% stake in the Don Julio tequila brand it does not already own, along with a cash payment. In return, Jose Cuervo, which is owned by the Beckmann family in Mexico, would take over the Bushmills brand, the WSJ said, citing people familiar with the matter.
The deal would allow Diageo to achieve its target of boosting its presence in the high-end tequila segment, after its bid to buy Jose Cuervo outright nearly two years ago collapsed.
http://online.wsj.com/articles/diageo-jose-cuervo-near-deal-to-swap-brands-1414869918
By Sam Unsted; [email protected]; @SamUAtAlliance
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