27 August – Diageo has shelved plans to buy a GBP30 million stake in Cobra beer, according to a UK source.
The drinks giant was believed to be in negotiations to purchase a 30% stake in the lager company that was started for sole consumption in the UK’s Indian restaurants for around GDP30 million.
However, it has been confirmed that Diageo has pulled out of the proposed deal.
A Diageo spokesman was quoted as saying: “'Diageo confirms that it has reviewed a possible link with Cobra.
'While a number of benefits for both parties were identified in the proposal, which was discussed, negotiations have now ended. No further comment will be made on the nature of the discussions.'
As FLEXNEWS reported on 30 July, Cobra founder Lord Bilimoria is looking to use cash raised through a partial sell-off to fund ambitious expansion plans. The company currently has annual sales of about GBP55 million.
Diageo is expected to report profits this week in excess of GBP2 billion.