British branded premium alcoholic beverages group Diageo Plc (LON:DGE; NYSE:DEO) is negotiating a cash-and-stock deal worth some USD3bn (EUR2.4bn) for the acquisition of Mexican tequila brand Jose Cuervo from the Beckmann family, the Telegraph said, citing sources.
Both parties retained advisors and a deal could be unveiled on Thursday when Diageo publishes its annual results, although the sources told the paper that the talks, although advanced, could go on beyond this month.
The British company, whose contract for the international distribution of Cuervo expires in June 2013, wants more control of the Mexican firm and is set to fight potential rivals for the deal. The acquisition would also boost its exposure to the fast-growth market in Latin America, the report said.
Goldman Sachs Group Inc (NYSEGS) and HSBC Holdings Plc (LON:HSBA) are advising Diageo, while the vendors retained the advisory services of Barclays Capital, the Telegraph said.
According to the paper, Diageo has also discussed a deal for a stake in Indian spirits and wines maker United Spirits Ltd (BOM:532432).
Its CEO Paul Walsh said earlier in 2012 that Diageo was exploring a potential listing in Hong Kong to help its Asian growth plans. The company is currently listed in London and New York.