Diageo calls time on Jose Cuervo talks
Drinks giant Diageo has called time on its bid to buy Mexico's Jose Cuervo tequila brand, ending year-long talks.
It had been expected to acquire Cuervo, the world's biggest tequila brand, from Mexico's wealthy Beckmann family for more than $3bn (£1.9bn) but today admitted the talks had ended.
Diageo said both companies would now ensure "an orderly termination" of its long-standing distribution agreement at the end of June 2013 to sell Cuervo outside of Mexico.
The failed deal marks a rare hiccup for Diageo, which has sailed through the global downturn with almost uninterrupted demand for its brands and a series of acquisitions.
The company last month said it plans to acquire 53.4 per cent of United Spirits for almost £1.3bn to give it control of the Vladivar vodka and Whyte & Mackay whisky brands in the fast-growing Indian market.
Diageo has also completed deals for Brazilian, Turkish and Chinese distillers during the past two years.
The Beckmanns are understood to have valued Cuervo at up to $500m more than Diageo, with the UK firm believing a significant investment was required to turn around falling sales in North America, and improve margins.
Diageo chief executive Paul Walsh said: "It has not been possible to agree a transaction which delivers value for Diageo's shareholders and therefore, by mutual agreement, we have terminated our discussions."
Top Gear presenter is no stranger to foot-in-mouth controversy
New essay by JK Rowling went live on Pottermore site this morning
Mike Tyson branded 'superhero' after a surprise good turn
Charlie Sheen could be set to revive his role as a hedonistic womaniser
Review: Mike Leigh's biopic is a rambling, rich character study
Want to ward off (or welcome) trick-or-treaters? Here's how
- 1 'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 4 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
- 5 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
Halloween 2014: From the Screaming Man of Pluckley to the 'White Lady' of the Tower of London - Britain's 20 most haunted places
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...