Diageo to make offer for Chinese distiller

Last year’s deal, which saw Diageo spend £13m to up its stake in Quanxing by
4pc, marked a major coup as it was one of the first occasions that a foreign
company was allowed to take a majority stake in a Chinese corporation.

Based in Chengdu, ShuiJingFang has been producing baijiu, China’s most popular
alcohol drink, for more than 600 years. It is the fourth biggest producer in
the premium end of the market and sells a 500ml bottle of baijiu for an
average price of about £60.

Diageo fell 4 at £15.13.