Diageo reportedly seeking to acquire Jose Cuervo
Diageo is reportedly in talks to buy Jose Cuervo, the world's biggest tequila brand, for more than $2 billion from its family owners, Bloomberg News reported. Diageo is the world's largest liquor maker Its brands include Johnnie Walker scotch and Smirnoff vodka, the report noted.
Citing "three people with knowledge of the matter," the article said:
Cuervo is in exclusive discussions with Diageo, which has the first option to buy the company because of its international distribution rights to the brand, said one of the people, who declined to be identified because the talks were confidential. The negotiations might not lead to a deal because the Beckmann family, which owns Cuervo, hasn't committed to selling, the people said. One person said the Beckmanns were leaning toward a sale.
The Bloomberg report noted that other liquor companies, including Pernod-Ricard, are also interested in Cuervo.
The article noted that Casa Cuervo chairman Juan Beckmann Vidal had said the company was renegotiating its distribution deal with Diageo and wasn't considering selling the brand.
The first Vino Mezcal de Tequila de Cose Cuervo was made in 1795, the article said. (Source: Bloomberg News, May 24, 2011.)
Posted Friday, June 03, 2011 • Permalink