Diageo yesterday announced that, following receipt of all necessary approvals, it has completed its acquisition of The Chalone Wine Group, Ltd.

Shareholders representing over two-thirds of outstanding shares of Chalone common stock signed consents favouring the merger, the world's number one spirit and wine company said in a statement.

Chalone is now a wholly-owned subsidiary of Diageo's North American operating company.

In connection with the completion of the transaction, Chalone's common stock ceased trading on NASDAQ at the close of US markets yesterday.

As previously announced, Chalone's common shareholders will receive US$14.25 per share in cash. Shareholders will also have the ability to join Chalone's Shareholder Cellars wine club and receive a one-time, non-transferable US$1.00 wine credit per share of Chalone common stock they held prior to the merger for use within one year after the merger.

"The brands and varietals of The Chalone Wine Group are an extremely good strategic fit with our current business," stated Ray Chadwick, president of Diageo Chateau & Estate Wines, Diageo's North American wine division. "This acquisition will enable us to continue to provide our consumers and customers with a leading collection of some of the highest quality premium wines. We are now well positioned to capitalise on the improving US demographic and consumption trends in the premium wine segment."