Diageo ends talks over Stock Spirits

By Alan Lodge 2011-4-27 9:27:10

Diageo is believed to have pulled out of talks over the purchase of Stock Spirits, one of the biggest drinks companies in central Europe.

the drinks business understands Diageo called an end to discussions after it refused to meet Stock’s owner Oaktree Capital Management’s £500 million valuation.

Diageo has so far refused to confirm its withdrawal from the auction.

The London-based drinks giant has been touted as the leading contender in the auction for Stock Spirits ever since Oaktree hired Credit Suisse to oversee a strategic review of the company in November last year.

Stock Spirits, which is headquartered in Luxembourg and has operations in the UK, Poland, the Czech Republic and Italy, owns owns Advocaat liqueur, Hammer Head whisky and Zoladkowa Gorzka, Poland’s market-leading vodka brand.

Diageo chief executive Paul Walsh has recently expressed his belief that emerging markets such as those in central and eastern Europe will make up half of group sales in five years time, and in February this year completed the acquisition of Turkish raki giant Mey Icki for £1.3bn.

The company is also still waiting on regulatory approval to raise its stake in Sichuan Shui Jing Fang, the fourth-biggest spirits group in China.

From www.thedrinksbusiness.com