Diageo eyes tequila brand Jose Cuervo: report
22 Mar 2011
Diageo Plc, the world's largest maker of alcoholic drinks is likely to make a $2-billion (£1.2 billion) bid for the world's biggest tequila brand Jose Cuervo, the Sunday Times said without citing sources.
Jose Cuervo, owned by heirs of the Cuervo family, the Beckmann family, is reported to have appointed Barclays Capital to explore a possible sale of all or part of Jose Cuervo.
Other interested bidders could be Bermuda-based family-controlled spirits company Bacardi, French spirits group Pernod Ricard and US-based alcoholic beverage maker Brown-Forman. But Diageo is expected to be the preferred bidder since it already holds the international distribution rights to Jose Cuervo.
London-based Diageo, whose products include Johnnie Walker, Bell's, Smirnoff vodka, Guinness and Gordon's Gin among many others is planning to expand in the fast-growing emerging markets.
It had acquired Turkish spirits firm Mey Icki for $2.1 billion last month, (See: Diageo to acquire Turkish distiller Mey Icki for $2.1 billion) and is also reported to have made a £500-million bid for Poland's largest vodka producer Stock Spirits.
Diageo, formed through the1997 merger of Guinness plc and Grand Metropolitan plc, is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine.
Diageo's products are sold in more than 180 countries around the world. The company is listed on both the New York and the London Stock Exchange
