UK/CHINA: Chinese spirits deal costs Diageo US$67m
Diageo has revealed the cost of its acquisition of a minority stake in Chinese spirits producer Sichuan Chengdu Quanxing Group Co.
Last month, the UK-based drinks giant snapped up a 43% share in Quanxing for what was then said to be an undisclosed sum.
However, Diageo has now said it will pay CNY517.2m (US$66.5m) for the stake, which gives it an interest in a leading maker of premium traditional Chinese liquor, or baijiu.
Quanxing holds 39.48% of the equity in Sichuan ShuiJingFang Joint Stock Co. Diageo said it expects to seal the transaction "shortly".
Diageo plans to help distribute Quanxing's spirits stable throughout China, a portfolio that includes the 'baijiu' brand Shui Jing Fang.
Diageo is also aiming to help promote the Shui Jing Fang brand outside China with markets in Asia the first target.
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