Diageo share price: Drinks giant completes sale of wine businesses

Diageo share price: Drinks giant completes sale of wine businesses

Diageo (LON:DGE) has completed the sale of its US-based Chateau and Estate Wines and UK-based Percy Fox businesses. The deal, which was agreed in October, saw Australian vintner Treasury Wine Estates buying the wine interests for $552 million. Diageo will reap net proceeds of roughly £320 million, with the blue-chip drinks giant to use the money to pay off debt.

The owner of the Guinness, Smirnoff Vodka and Johnny Walker whiskey brands has been trying to shed a number of non-core assets in recent months. Including the latest transaction, Diageo has released £1 billion through selling non-core assets since the start of the financial year. “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. Wine is no longer core to Diageo and this sale gives us greater focus,” CEO Ivan Menezes said in October.
Following today’s sale of the UK and US interests, Diageo’s remaining wine interests are Justerini & Brooks Wine Merchants, the Argentinian wine business Navarro Correas, wine brands MeyIcki and USL, the Chalone brand and assets and the Acacia winery and vineyard.
Diageo’s share price has fallen this morning amid a generally subdued market trend. As of 09:40 GMT, the stock was trading 1.05 percent lower at 1,837.00 – slightly outperforming the FTSE 100 index, which meanwhile stood at 6,127.91 points.
As of 10:04 GMT, Monday, 04 January, Diageo plc share price is 1,837.75p.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.
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