Diageo has received approval from the Chinese authorities to acquire the remaining 47% stake in Sichuan Chengdu Shuijingfang Group, the Chinese drinks manufacturer, that it does not already own.
The deal, worth c£233m, will see the Chinese producer converted from a joint venture into a wholly foreign-owned enterprise owned by Diageo.
Gilbert Ghostine, president of Diageo Asia Pacific, said: “I am delighted to have gained approval from the Chinese authorities to acquire the rest of our Chinese partners’ interest in SJF HoldCo. This is a milestone in the journey we began with our partners six years ago.
“As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build Shuijingfang into the leading international Bai Jiu brand. I have every confidence in the long-term future of the Bai Jiu category in China.”
