Dive Summary:
- Chinese authorities approved on Tuesday Diageo's purchase of the remaining 47% stake in Sichuan Chengdu Shuijingfang for $358 million.
- The purchase is an attempt for the world's biggest spirits maker to increase its footprint in one of the world's largest consumer markets, and the deal will additionally increase Diageo's indirect interest in Sichuan Shuijingfang Co. from 21.05% to 39.71%.
- Shares of Diageo are up 27% year-to-date, rising 2.3% to $104.52 in recent trade.
From the article:
... “This is a milestone in the journey we began with our partners six years ago,” Gilbert Ghostine, president of Diageo Asia Pacific, said in a statement. “As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build [it] into the leading international Bai Jiu brand.” ...
