Blog: Chris MercerRemy Cointreau to lure Diageo away from Moet?

Chris Mercer | 8 April 2011

Deutsche Bank thinks that Diageo would be better off ditching Moet Hennessy and walking into the, relatively speaking, open arms of Remy Cointreau.

You can certainly see the logic. Moet Hennessy's owner, Bernard Arnault, has consisently said that he doesn't want to sell up. Meanwhile, Diageo is choking on Pernod Ricard's Cognac fumes in China, without a brand of its own. 

Added to that, Deutsche Bank thinks that Diageo will generate more synergies from a deal with Remy Cointreau.

However, the fact that the value of Diageo's 34% stake in Moet could be enough to cover a takeover of Remy Cointreau says something. Moet is the bigger prize, if only the drinks giant can find a legal way to loosen Arnault's grip. It also offers Diageo ownership of the world's best-selling Champagne - Moet & Chandon.

I'm sure this is something that Diageo has mulled at different points over the last few years, but it's far from a straightforward decision. If it wanted to plump for Remy, wouldn't it have moved before now?

At the same time, Diageo could be saving itself for a swoop for Jim Beam.


BLOG

Pernod Ricard's Havanista remains poised to capitalise post-embargo

Spotted in Havana this week – a healthy stock of Pernod Ricard's Havanista rum. ...

BLOG

Does Oscar glory beckon for 'Mr Heineken'?

Alcohol always has a big presence at the Oscars, albeit mostly in a supporting role....

BLOG

Is pisco preparing to make some noise?

Business is booming at copper pot still makers Chalvignac - you can tell from the loud noise coming from its factory floor in the French town of Jarnac-Champagne. ...

BLOG

Heineken has eye on the (soccer) ball in US

Heineken is betting big on the long-term opportunity around soccer in the US. ...

just-drinks homepage



Forgot your password?