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Diageo rumored to be 3G Capital’s next target
3G Capital, a Brazilian privately held company famous for having acquired Burger King and Tim Horton’s, bringing them together under Restaurant Brands International, is said to be considering taking over Diageo Plc. (NYSE:DEO), the world’s largest producer of spirits, owning such famous brands as Johnnie Walker, Smirnoff and Guiness among others.
The rumors based on an article published by Brazilian journalist Lauro Jardim last Friday in Veja, a popular magazine, surprised Wall Street and Diageo’s shares soared to US$118 at close of markets on Friday in New York, their highest close of the past three months. Diageo was trading 2.64% lower today, but still within the high range of the past thirty days.
In March, the company joined Warren Buffett’s Berkshire Hathaway, to acquire Kraft, creating the third largest food and beverage company in North America.
The Brazilian group controlled by Jorge Paulo Lemann and his partners has also profited greatly from the consolidation in the beverage industry.
In 2004, 3G bought Interbrew for US$11 billion. Four years later, they acquired Anheuser-Busch for $ 52 billion, forming the world’s largest beer manufacturer.
Diageo, the world leader in premium spirits with operations in 180 countries and more than 28,000 employees, said has neither confirmed nor denied rumors 3G Capital’s courtship. Diageo’s market value is estimated at close to US$70 billion.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/61852/diageo-rumored-to-be-3g-capitals-next-target-61852.html
