Company Trend Analysis - Diageo M&A Drive To Continue - OCT 2017

BMI View: We believe that Diageo ' s M&A drive, which accelerated over 2016 and 2017 after a lull period, will continue, with Moet Hennessey and Fev er Tree Tonic potential targets of interest for the company.

We previously highlighted that Diageo had been relatively inactive in terms of mergers and acquisitions (M&A) but expressed our belief that this would change from 2016 onwards: ' we believe that M&A activity will focus on optimising Diageo's brand portfolio in developed markets, better aligning to consumer preferences in the US, and acquiring smaller distillers in emerging markets ' (See: 'Diageo Plc - Global Company Strategy', September 29 2015).

This view played out as the below investments demonstrate:

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