Enough of tequila talk, Diageo tells Mexicans
LONDON - Reuters
![Enough of tequila talk, Diageo tells Mexicans](http://image.hurimg.com/i/hurriyet/75/0x0/59c7396545d2a027e83a8d6f.jpg)
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Diageo, the world’s biggest spirits maker which also owns Turkey’s Mey İçki, has pulled out of long-running talks to buy a stake in top-selling tequila brand Jose Cuervo in a surprise move that could slow its race into fast-growing emerging markets.The collapse of negotiations could also fuel speculation the British group will seek a deal with U.S. group Beam, home of the world’s No.2 tequila brand Sauza. A weekend newspaper report said Diageo had held talks with Japanese brewer Suntory over a joint bid for Beam worth over $10 billion.
Faced with sluggish growth in recession-hit European economies, Diageo is looking to tap burgeoning middle classes in Asia, Africa and Latin America.
A deal with Jose Cuervo, valued at about $3 billion, would have given Diageo access to the emerging Mexican spirits market and a stronger product range there to go with its Johnnie Walker whisky and Smirnoff vodka brands.