Diageo (DGE.L), the world's biggest spirits maker, is in talks with the owners of Jose Cuervo tequila over extending a distribution deal or buying it outright for over $2 billion, sources familiar with the matter told Reuters. The London-based group distributes the world's best selling tequila in most big export markets outside Mexico and is currently talking with the Beckmann family owners about what happens when this long-term contract ends in June 2013. Chairman of Casa Cuervo and heir to a tequila empire founded in the late 1800s Juan Beckmann Vidal told Reuters earlier this month that his company was renegotiating a distribution deal. "We don't need to sell," he said.. "Diageo are talking to Jose Cuervo about the future shape of the relationship which has a number of potential scenarios," one of the sources said on Wednesday.
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