Cross Border M&A - 2

Diageo buys stake in Chinese spirits group

Diageo has moved to bolster its presence in China with the acquisition of a minority stake in local spirits group Sichuan Chengdu Quanxing Group Co.

The UK drinks giant said today (12 December) that it has snapped up a 43% stake in Quanxing for an undisclosed sum. Pending approval from the Chinese government, Diageo and Quanxing plan to set up a joint venture to develop their footprint across the country.
Diageo plans to help distribute Quanxing's spirits stable throughout China, a portfolio that includes the super-premium 'bai jiu' brand Shui Jing Fang. Quanxing will help Diageo in sourcing packaging for its products on sale in China.
Diageo is also aiming to help promote the Shui Jing Fang brand outside China with markets in Asia the first target.

European corporations brace for acquisition frenzy.

Research shows that 64 per cent of European corporations expect an increase in mergers and acquisitions.  The technology, media and telecoms sectors will be hotspot areas for merger and acquisition (M&A) activity over the next six months, according to the latest research from KPMG.  The market watcher's Mid-Market M&A Outlook survey of 230 mid-market corporations, financial sponsors and fund managers across Europe revealed that more than two-thirds of senior executives expect M&A activity to increase.