UK: Diageo sells Malibu and Mumm to Allied Domecq
Diageo will also sell the Mumm Cuvee Napa Californian sparkling wine operation to Allied Domecq for £27.5m though the two deals are not inter-dependent.
Diageo had been forced by US regulatory authorities to sell Malibu in order to clear the way for taking the Captain Morgan brand, part of Diageo's joint acquisition of the Seagram business last year with Pernod Ricard, into its portfolio.
At the same time, Diageo has reached an agreement with Puerto Rican rum company, Destileria Serralles, which was pursuing a legal case regarding ownership of the Captain Morgan rum brand, for Seralles to supply Diageo with rum for Captain Morgan.
Legal proceedings are accordingly going to be halted. It had been reported that Serralles was effectively pursuing its legal case for Captain Morgan on behalf of Allied Domecq which was said to put the latter company in a strong position to win the chase for Malibu.
"These transactions effect the sale of Malibu, confirm Diageo's ownership of Captain Morgan and secure its long-term rum supply," said Diageo CEO, Paul Walsh. "The disposal is the last of the significant transactions that result from our acquisition of the Seagram Spirits & Wines businesses."
It was also reported that Diageo will receive a $75m payment from Vivendi Universal for selling Malibu and ending the Captain Morgan litigation.
The US consumer goods group Fortune Brands has confirmed it is in talks about launching a joint bid with Pernod Ricard for Allied Domecq....
Diageo is to launch a new global advertising campaign for Smirnoff Ice. The first ad in the global campaign, 'Garden', launches in Great Britain on April 11th on terrestrial and satellite TV. ...
Pernod Ricard is looking to acquire Allied Domecq....
Allied Domecq and Pernod Ricard have both been downgraded....
Diageo has completed another share buyback transaction....
Fortune Brands has started making moves to acquire in the European drinks industry, according to press reports....
E&J Gallo has announced a number of appointments within its European division....
Diageo's Smirnoff Signatures line of premixed cocktails is now available nationwide in the US....
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