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Tuesday, May 24, 2011

Diageo in talks to purchase Jose Cuervo-Bloomberg, (DGE)

Diageo Plc (DGE.L), the maker of Johnnie Walker scotch and Smirnoff vodka, is in talks to purchase tequila brand Jose Cuervo for more than $2 billion, Bloomberg reported on Tuesday. Cuervo is in exclusive talks with Diageo, which has the first option to buy the company because of its international distribution rights to the brand, Bloomberg reported. Diageo declined to comment. Earlier this month, Reuters reported that the maker of Jose Cuervo, the world's best-selling tequila brand, was not considering putting the property on the block, despite being courted by other companies eager to add the drink to their portfolios.