Diageo Deal For Chase Distillery Facing Regulatory Probe

(Alliance News) - The UK's competition regulator said Friday it will probe Diageo PLC's intended ...

Alliance News 8 January, 2021 | 8:09AM
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(Alliance News) - The UK's competition regulator said Friday it will probe Diageo PLC's intended buy of Chase Distillery.

The Competition & Markets Authority said it is considering whether the deal will result in the "substantial lessening of competition within any market or markets in the UK for goods or services".

The CMA is inviting comment on the proposed deal, which will close on January 21.

Spirit giant Diageo first announced the deal to buy Herefordshire gin and vodka-maker Chase Distillery in mid-October.

The takeover, for an undisclosed amount, will see the Johnnie Walker and Gordon's owner further expand its UK gin business as customer demand for premium spirits continues to surge.

It comes months after Diageo bought actor Ryan Reynolds-backed Aviation American Gin in a deal worth up to USD610 million.

Chase Distillery was founded by entrepreneur William Chase in 2008 and has a portfolio which includes seven gins, four vodkas and an elderflower liqueur.

Shares in Diageo were up 0.6% at 3,006.09 pence in London on Friday morning.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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