After United Spirits, Diageo eyes US bourbon maker Beam: report
10 Dec 2012
Just a month after agreeing to pay $2.05 billion for a 51-per cent stake in Vijay Mallya's United Spirits, Diageo Plc, the world's biggest spirits maker, Diageo is in talks with Japanese brewer Suntory for tabling a joint $10 billion plus bid for US bourbon maker Beam Inc, Britain's Sunday Telegraph yesterday reported, citing unnamed sources.
Diageo, the maker of Johnnie Walker whisky, has held discussions in the spring and summer with Suntory, one of Japan's largest drinks companies, but a deal was unlikely in the near future, said the report.
Diageo is understood to have also held talks with two private equity firms about a partnership over Beam.
London-based Diageo is interested only in some of Beam's brands, which include the bourbon whisky Jim Beam and taking on a partner would help in getting past regulatory hudles, the report added.
Deerfield, Illinois-based Beam, which traces its roots to 1795, has in its portfolio leading brands that include Jim Beam Bourbon, Maker's Mark Bourbon, Sauza Tequila, Courvoisier Cognac, Canadian Club Whisky, Teacher's Scotch, Laphroaig Single-Malt Scotch, Cruzan Rum, Pucker Flavored Vodka, and others.
In India, Beam has its headquarters at New Delhi and a bottling plant at Behror, Rajasthan. Its brand portfolio in India includes Teacher's Scotch whisky and a suite of other premium brands.