Diageo gets go-ahead for China spirits deal
Diageo has finally been given the green light by Chinese competition authorities to press on with its takeover of one of the country’s leading spirits groups.
The Guinness and Smirnoff maker issued its bid for a controlling stake of Sichuan Chengdu Quanxing Group last year.
The Chinese business holds a stake in Shui Jing Fang, a popular brand of white spirit. Diageo now plans to launch a mandatory offer for the remainder of Shui Jing Fang.
“We are privileged to have the unique opportunity to participate at scale in super-premium Chinese white spirits, one of the largest, fastest-growing spirits segments in the world," said Diageo chief executive Paul Walsh.
Completion of the deal comes after Diageo last month implemented a wide-ranging structural overhaul designed to put greater emphasis on growth in emerging markets.
Diageo buys out rival's Kenya Breweries stake (6 June 2011)
Far-reaching Diageo shake-up prompts fears of job cuts (25 May 2011)
Cable backs Diageo’s bid for China spirits group (8 November 2010)