UK/CHINA: Chinese spirits deal costs Diageo US$67m

By | 30 January 2007

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.

Sectors: Beer & cider, Spirits, Wine

Companies: Diageo

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