The Smirnoff and Guinness owner is now expected to use the deal to accelerate growth of its spirits brands in Turkey. The deal also marks the latest step in its strategy to target emerging markets such as China and Vietnam.
"Financially, the deal looks attractive from day one and offers revenue synergies further out," said Nomura drinks analyst Ian Shackleton. "It also increases the skew of profits in the Europe division towards growth markets for further deals."
Booker CEO Charles Wilson also applauded the deal. "How many £1bn deals do you see being pulled off by UK companies?" he said. "British industry is so parochial but this is a great move. Diageo has a genuine global business perspective."