Another Big Merger Deal Brewing in Booze
Diageo PLC (NYSE: DEO) is reportedly set to acquire the well-known and widely distributed Jose Cuervo tequila brand. The deal was talked up in the Sunday Times and is said to be closing as soon as this week for as…
Bloomberg TV was reporting that, as the distributor, Diageo has the right to buy Jose Cuervo from the Beckmann family. As far as the details of the deal, these remain sketchy, other than that Diageo may fund part of the deal with its own shares and that the deal may have multiple agreements based on the various aspects of the Jose Cuervo business.
The world is seeing a mass consolidation of brand ownership among top beer and alcohol companies. Anheuser-Busch InBev (NYSE: BUD) is not that old of a merger itself, with the Budweiser empire becoming part of the InBev empire, and now it has gone after Grupo Modelo, also in Mexico, for the stake it does not own.
As far as how this would compare to the Diageo empire, its listed value of its ADRs per Yahoo! Finance is $66 billion. Those ADRs are at $106.05 so far today, and the 52-week range is $72.33 to $109.33.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
