08.03.2011 - Vinexpo news selection
Diageo, the world's biggest spirits maker, agreed on Monday to buy raki spirits maker Mey Icki for 1.3 billion pounds ($2.1 billion) in cash to give it access to the fast-growing Turkish market.
The London-based maker of Johnnie Walker whisky and Smirnoff vodka is buying Turkey's biggest spirits company, with an 80 percent share in the country's top-selling spirit category, the aniseed-flavored raki, and a leading seller of local vodka.
The British group hopes the business it is buying from private equity groups TPG Capital LP and Actera will help it tap into a local boom in raki and vodka, and boost sales of its own brands through Mey Icki's network. It aims to resolve Turkish tax issues that had delayed a deal in the next few weeks.
"Turkey is seeing rapid growth of its middle classes, so there is growth in local raki and vodka, while the deal provides a fantastic platform for Diageo's international brands in Turkey," the head of Diageo's Europe business, Andrew Morgan, told a conference call after agreeing the deal. (Reuters / 21 February 2011)