Diageo is set to clinch a deal for tequila brand Jose Cuervo – more than a year after first being linked with the spirits group.

A swoop was first touted early last year. But only now has a deal reportedly been struck with the brand’s Mexican owner, the Beckmann family.

The deal is reportedly worth around $3bn (£1.9bn) and could be funded largely with Diageo shares.

News of the agreement comes with Diageo poised to deliver a surge in pre-tax profits when it announces its full-year results later this week.

Analysts expect the Guinness brewer, whose spirits include Johnnie Walker and Smirnoff, to grow profits by almost a quarter to around £2.9bn, despite a double-digit fall in revenues.