Saturday 27 May 2017

Diageo agrees to sell its major wine interests for $552m

A worker walks past the headquarters of Diageo in London
A worker walks past the headquarters of Diageo in London
Gavin McLoughlin

Gavin McLoughlin

Guinness owner Diageo has agreed to sell its major wine interests for $552m.

Its US-based Chateau and Estate Wines and the UK-based Percy Fox businesses will be sold to Australian winemaker Treasury Wine Estates.

Diageo boss Ivan Menezes said wine was no longer a core part of Diageo's business.

""Diageo's strategy is to drive stronger, sustained performance through focus on our core portfolio and today's announcement is another element of that strategy in action...this sale gives us greater focus," he said.

"With the completion of this transaction Diageo will have released £1bn from the sale of non-core assets since the start of the financial year. This proactive portfolio approach has focused the business, enhanced our financial strength, improved our returns and strengthened the business, positioning us even more firmly to deliver our performance ambition," he added.

Diageo said the deal would lead to an exceptional loss on disposal of around £150m after tax.

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