Diageo closes in on deal to buy Jose Cuervo tequila brand

| August 20, 2012 | 0 Comments

Daily Mail Reporter

16:08 EST, 19 August 2012


16:09 EST, 19 August 2012

Changing hands? Jose Cuervo tequila

Changing hands? Jose Cuervo tequila

Drinks giant Diageo was last night said to be close to a deal to buy the Jose Cuervo tequila brand for £1.9bn.

The company, whose current brands include Guinness and Johnnie Walker, could announce the purchase alongside annual results on Thursday.

However, many observers expect talks with the current owners, Mexico’s super-rich Beckmann family, to continue for a few more weeks.

Diageo is expected to cheer strong profits growth on Thursday as sales in emerging markets outperform the UK and Europe.

Analysts said Latin America, Africa and Asia will be the key drivers behind an 11 per cent increase in pre-tax profits to £2.9bn for the year to June 30.

Sales in the UK have been hit by widespread pub closures while the eurozone crisis has hurt business in countries such as Ireland, Spain and Greece. Diageo shares closed last week at 1686.5p.

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