Oct. 13, 2015, 7:37 PM
- Diageo (NYSE:DEO) has an agreement to sell most of its UK and U.S. wine assets to Treasury Wine Estates (OTCPK:TSRYY), the Australian firm that is the world's biggest stand-alone wine maker, for $552M.
- Brands Diageo is letting go include Sterling Vineyards, Blossom Hill and Piat D'or, as Treasury looks to double its "masstige" (mass prestige) revenues in the U.S.
- Treasury is the maker of Penfolds. It's announcing a rights issue to raise A$486M (about $350M) to fund the deal.
- Diageo was widely expected to shop its wine business as it focused on core business. "Wine is small," CEO Ivan Mendes said this summer. "It plays a role in the U.S. right now, but it is not going to get bigger for us.”
- After hours, Diageo is up 0.3%.
- Previously: Diageo reportedly looking to sell wine business (Sep. 30 2015)
Sep. 30, 2015, 6:27 PM
- The Telegraph reports Diageo (NYSE:DEO) is pushing ahead with the sale of its wine brands (Blossom Hill, Piat d'Or, Rosenblum, etc.), as part of the drinks giant's ongoing attempts to unload non-core businesses.
- Australia's Treasury Wine Estates is said to be "a leading suitor" for the business, No word on a sale price.
- CEO Ivan Mendes suggested in July Diageo could sell its wine ops. “We do look at the portfolio, and I would say that without getting into specifics you can expect us to be active managers of our portfolio ... Wine is small. It plays a role in the US right now, but it is not going to get bigger for us.”
Sep. 16, 2015, 9:56 AM
- Beer stocks are in party mode with Anheuser-Busch InBev (BUD +6.9%) closing in on making an offer for SABMiller (OTCPK:SBMRY +20.5%).
- Consolidation within the industry is seen supporting pricing and raising the M&A profile of large and smaller players alike.
- Gainers: Heineken ADRs (OTCQX:HEINY) +3.7%, Diageo (NYSE:DEO) +2.9%, Molson Coors (NYSE:TAP) +14.5%, Carlsberg (OTCPK:CABGY) +3.7%, Craft Brew Alliance (OTCPK:CABGY) +3.7%, Constellation Brands (NYSE:STZ) +0.8%, Boston Beer (NYSE:SAM) +1.6%.
- Previously: AB InBev prepping offer for SABMiller (Sep. 16 2015)
- Previously: Molson Coors pops with A-B circling SABMiller (Sep. 16 2015)
Jun. 26, 2015, 1:47 PM
- Ennismore Capital is the top bidder in an auction by Diageo (DEO -0.7%) to sell the Gleneagles golf course in Scotland, according to Sky News.
- Sources indicate an announcement on the deal could come next week.
- A transaction price of £150M ($235.88M) for the site of last year's Ryder Cup has been reported.
Jun. 6, 2015, 4:14 PM
- Firm says a near-term bid for Diageo (NYSE:DEO) is "highly unlikely." DEO is unlikely to sell itself for less than $90B (vs. $74.2B as of Friday's close).
- Previously: Diageo jumps on report of potential takeover offer (Jun. 5)
Jun. 5, 2015, 4:30 PM
- Brazil's Veja reports local P-E firm 3G Capital is considering a bid for Diageo (NYSE:DEO). The liquor giant's shares surged during the final hour of trading, closing up 8%.
- 3G, known for buying companies possessing popular consumer brands and engaging in ruthless cost-cutting afterwards, is said to be in the early stages of weighing an acquisition. The firm is less than 3 months removed from striking a deal to merge existing holding H.J. Heinz with Kraft Foods.
Nov. 3, 2014, 3:47 AM
- As expected, Diageo (NYSE:DEO) has agreed to take full control of Tequila Don Julio, acquiring the 50% of the brand that it doesn't already own from Jose Cuervo.
- The latter will receive Diageo's Bushmills whiskey label in return but will also pay the British group $408M.
- Diageo CEO Ivan Menezes says the deal has two objectives: "We have secured our position in the growing super and ultra-premium segments of the tequila category, and further strengthened our global footprint by expanding our leading position in Mexico, where the growth of spirits has great potential," Menezes says.
- Diageo shares are +0.8% in London. (PR)
Nov. 2, 2014, 6:34 PM
Sep. 14, 2014, 10:30 AM
- SABMiller (OTCPK:SBMRF) has been approached Heineken (OTCQX:HEINY) about a merger only to be rebuffed by the controlling Heinken family, reports Bloomberg.
- Another mega-merger within the beer industry has been widely anticipated by analysts in order to line up regional strengths and weaknesses.
- Related stocks: Anheuser-Busch InBev (NYSE:BUD), Diageo (NYSE:DEO), Carlsberg (OTCPK:CABGY), Molson Coors (NYSE:TAP), Boston Beer (NYSE:SAM).
Apr. 15, 2014, 5:26 AM
Jan. 15, 2014, 9:37 AM
- Liberum thinks a consortium led by Diageo (DEO -1.6%) will come in with a bid to top the $16B Suntory (STBFY) is willing to pony up for Beam (BEAM).
- The interesting part of the equation for Diageo is that if it partners up it can end up only buying the strategic bourbon and tequila lines which would lead to significant synergies.
Dec. 22, 2013, 4:07 AM
- The High Court of Karnataka in India has annulled Diageo's (DEO) acquisition of control in United Spirits from United Breweries Holdings' following a petition by creditors involved with UB Group, United Breweries' parent company.
- Diageo intends to appeal the ruling, with analysts confident that the British spirits provider will eventually prevail. Just under 7% of the shares that Diageo owns in United Spirits are affected by the verdict; in total the U.K. firm holds 26%.
- United Breweries was the guarantor of some loans to another UB Group company, bankrupt Kingfisher Airlines. The carrier's creditors want to recover these loans by stopping part of the Diageo deal.
Nov. 19, 2013, 4:42 PM
- Diageo (DEO +0.4%) CEO Ivan Menezes says the liquor company "[doesn't] need to" buy Beam (BEAM) because it is expanding its whiskey offerings and launching new brands in the segment. Speculation has circulated that Beam's bourbon brands would complement Diageo's scotch collection.
- Diageo states it occupies 23% of the North American whiskey market. Bulleit, Diageo's only bourbon offering, is doubling sales every year according to Menezes. And the company plans to launch 2 new brands, Orphan Barrel and Blade & Bow, aimed at the ultra-premium end of the bourbon market.
Jul. 5, 2013, 2:49 AM
Diageo (DEO) has gained control of United Spirits by acquiring a 14.98% stake in the Indian company from companies owned by businessman Vijay Mallya for 31.3B rupees ($521M). While the purchase takes Diageo's stake to just 25.02%, voting and other governance arrangements with Mallya enable the U.K. firm to have control. The deal gives Diageo the leading position in the largest whiskey market in the world, where it will now look to promote Johnnie Walker. (PR) (Previous)| Jul. 5, 2013, 2:49 AM
Dec. 11, 2012, 2:49 AM
Diageo (DEO) ends long-running negotiations to acquire Jose Cuervo from Mexico's Beckmann family and will terminate its distribution agreement for the world's top tequila brand at the end of June 2013. The acquisition of Jose Cuervo, which probably would have been valued at $3B, would have been part of Diageo's strategy of buying top brands in fast-growing emerging markets. (previous) (PR)| Dec. 11, 2012, 2:49 AM | 1 Comment
Dec. 9, 2012, 2:56 AM
Diageo (DEO) reportedly held talks earlier this year with Japanese peer Suntory about joining up to buy bourbon whiskey producer Beam (BEAM) for over $10B. With talks stalling, both companies have held discussions with other potential partners. A bid for Beam, whose market cap is $9.5B, would mark a departure by Diageo from its strategy of acquiring spirits brands in fast-growing emerging markets.| Dec. 9, 2012, 2:56 AM | 1 Comment