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International business negotiations news: Diageo 'in talks with Cuervo'

Diageo is reportedly in talks with tequila company Cuervo.

26 May 2011

International business negotiations are taking place between Diageo, one of the world's biggest spirits manufacturers and Jose Cuervo.

This is according to a Reuters report, which cited the insight of sources close to the matter as stating the pair are discussing an extended distribution deal or an outright takeover.

Diageo, which is based in London, will see its current tequila distribution contract end in 2013 and is reportedly speaking with the Beckmann family, owners of Casa Cuervo.

Reuters quoted one of its sources as stating: "Diageo are talking to Jose Cuervo about the future shape of the relationship, which has a number of potential scenarios."

It went on to consult a London banker, who claimed the sales negotiations make "a lot of sense" and described a deal between the pair as the "most logical outcome".

This comes after pharmaceuticals giants Roche and Merck concluded their business negotiations by announcing a new joint venture on treatment and diagnostics for hepatitis C.
 

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