Pursuits
Diageo Ends Cuervo Talks, Will Terminate Distribution Deal
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Diageo Plc, the world’s largest distiller, abandoned talks to acquire Cuervo tequila and will seek to end its 26-year-old agreement to distribute the brand, fueling speculation that it may try to find a substitute.
Discussions with Cuervo owners JB y Compania SA de C.V. and Lanceros S.A. de C.V. failed to bring an agreement that would have created value for Diageo shareholders, Paul Walsh, chief executive officer of the London-based distiller, said in a statement today. Diageo’s accord to distribute the tequila outside of Mexico is due to expire at the end of June.