Diageo’s long-awaited takeover of Mexican tequila company Jose Cuervo is close to being confirmed in a deal worth approximately US $3bn, in a mix of cash and shares, later this week. Diageo Chief Executive Paul Walsh could announce the acquisition alongside annual results on Thursday, the report said without citing sources, though it also said talks could last a few more weeks. Diageo already distributes Cuervo worldwide but the move to take full control comes ahead of the end of Diageo’s contract with the brand, which is due to expire in June 2013.
The move is part of Diageo’s strategy to increase its presence in the rapidly-growing Latin American market. Earlier this year, Diageo acquired Brazilian rum brand Ypioca for US $469m.