Diageo In Pernod Ricard Chase With ShuiJingFang Buy

British spirits major Diageo has upped its stake in Chinese holding company Quanxing by 4%, to 53%, in a deal worth GBP14mn (US$21mn). The motivation for the investment was Quanxing's 39.7% stake in premium white spirit manufacturer ShuiJingFang. The acquisition will give Diageo a toehold in the high-growth domestic premium spirits industry to complement its existing foothold in the increasingly dynamic international spirits sector. Importantly, the deal will also give Diageo a chance to get closer to the international spirits market leader Pernod Ricard in China and to more effectively capitalise on forecast alcoholic drink sales growth of 55%, to

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