Diageo to gain control of famed PRC alcohol brand

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    Diageo, the UK-based global beverages company, is acquiring a controlling interest in its existing Chinese joint venture, Sichuan Chengdu Quangxing Group…

    Diageo, the UK-based global beverages company, is acquiring a controlling interest in its existing Chinese joint venture, Sichuan Chengdu Quangxing Group (Quanxing). It is also making a mandatory tender offer for PRC white spirits maker and Shanghai-listed Sichuan Shujingfang (Shuijingfang).

    Chinese regulators have already approved Diageo's acquisition of an additional 4% stake in Quanxing from Chengdu Yingsheng Investment Holding for Rmb140 million (US$21.6 million). Once the transaction has been completed, Diageo's holding in Quanxing will increase to 53%. Quanxing is the largest shareholder of Shuijingfang, holding 39.7%.

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