Chinese government to intervene in Diageo's China move

 (Reuters) - The business secretary is to intervene on behalf of drinks group Diageo to smooth its 700 million pound acquisition of China's Shui Jing Fang, he was quoted as saying in the Daily Telegraph on Monday.

Vince Cable, who is part of the government team visiting Beijing this week, told the newspaper that deal would be the subject of discussions with China but declined to predict the outcome of any talks.

On Monday, Cable will also sign an agreement so that the name Scotch Whisky is restricted to the drink produced in Scotland.

"The framework agreement (on Scotch whisky) is something that will make it much easier in general for those companies to operate and sell here," Cable said when asked by the newspaper about the Diageo case.

Diageo said in March it could spend at least 624 million pounds to take over China's fourth-largest spirits group and add Chinese white spirits to its portfolio of top brands.

The company is awaiting approval by the Chinese authorities.

Diageo, which owns brands including Guinness, Baileys and Smirnoff, was not immediately reachable for comment.

"We are obviously grateful that the government intends to make representations in support of our position," a Diageo spokesman told the Telegraph.

He added: "The regulatory decision on this acquisition and the timing of that decision, are completely a matter for the Chinese authorities."

(Reporting by Karolina Tagaris )