Diageo to mull over Ketel One option

The two sides agreed a distribution deal in 2008, and Diageo paid around £600 million for its share of the joint venture.

The option period over the Nolet’s 50% stake runs from 9 June this year through to 9 June 2013.

It follows last month’s announcement of a restructure of the company and a greater focus on emerging markets. To this end, the company this week moved to buy SABMiller's 20% stake in Kenya Breweries to take full ownership of the business.

Analysts at ING said of the Ketel One option: “Diageo is allowed to neglect the offer but in this case it has to pay US$100m to the Nolet family, while the family is then allowed to sell the stake to a third party (still with the right of refusal by Diageo).

“This major payment might need to be done at a time when Diageo is really actively changing its business structure. It likes to invest more in developing markets, in which we have seen four actions up to now.

“It acquired a minority stake in a Vietnamese local producer, it intends to buy the majority in a Chinese local spirits producer, it bought the leading spirit player in Turkey and yesterday its 51% subsidiary EABL acquired the remaining 20% stake in Kenya Breweries for US$225m.

“Diageo is gradually changing into a higher growth machine through a better regional profile, although several acquisitions might still be relatively expensive.”