Diageo Strengthens its Standing in Chinese White Spirits Market
Chinese regulators have approved Diageo’s acquisition of an additional 4% stake in Sichuan Chengdu Quanxing Group Company for £13m, which takes the global spirits group’s shareholding to 53% giving it control of one of China’s best known spirit brands. Diageo is now seeking approval from the China Securities Regulatory Commission to launch the required mandatory tender offer for the outstanding shares.
“I am delighted that Diageo’s application to increase its investment in Quanxing has been approved by the Chinese authorities. We look forward to working with our Chinese partners to further develop the ShuiJingFang brand both domestically and overseas,” says Paul Walsh, chief executive of Diageo. “We are privileged to have the unique opportunity to participate at scale in super premium Chinese white spirits, one of the largest, fastest growing spirits segments in the world.”
