Diageo (NYSE:DEO) is one of the major alcohol companies in the world with a market cap of $112 billion. It produces products of the brands Johnny Walker, Ciroc, Captain Morgan, Guinness, Smirnoff, Bailey’s and other
Diageo Should Buy Beluga Group While It's Still Cheap
Summary
- Beluga Group is the leading producer and wholesaler of alcohol in Russia.
- Brands that the company owns would be the perfect fit for Diageo.
- At current valuation, Beluga Group is extremely cheap.
- The effect of Beluga Group’s acquisition on Diageo’s market cap may amount to $2 billion at once.
- The gradual incremental effect due to synergy is estimated at another $1.5 billion.
The other side of the investment analysis in Russia. We write the way banks, brokers and newspapers don't.
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