Diageo eyes stake in Beam Global

10th December, 2012 by Becky Paskin

Diageo has reportedly been in discussion with several parties, including Japanese brewer Suntory, to take a stake in US drinks company Beam Global.

Beam logo Diageo

Diageo is yet to approach US- based Beam about a potential takeover bid

The world’s largest drinks company is said to have held talks with Suntory amongst other drinks companies and private equity firms, in a bid to strike a US$10bn deal to acquire a chunk of Beam’s brands, which include Jim Beam bourbon, Pinnacle vodka and Courvoisier Cognac.

As Diageo is still currently settling several other takeover deals, it is thought any swoop made for Beam will be delayed until next year.

The news comes just weeks after Diageo announced a £1.2bn deal to acquire a 53.4% stake in Vijay Mallya’s Indian drinks company United Spirits, while discussions are still on-going with the Beckmann family over a bid to buy their Jose Cuervo Tequila brand.

As such Diageo has not yet made any formal offer nor has it discussed the notion with Beam. A move to buy a stake in Beam, whose core business is centered in the US, would be a departure from Diageo CEO Paul Walsh’s strategy to enter key emerging markets.

Diageo declined to comment.

One Response to “Diageo eyes stake in Beam Global”

  1. Anonymous says:

    Similar rumors have been heard by myself. Specifically, a joint Suntory/Diageo takeover with Beam Bourbon to be claimed by Diageo leaving the residual assets to fall under Suntory. Rumors only, though….

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