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Cheers: Diageo's £1.3bn Turkish deal

posted 21 Feb 2011, 09:08 by Mpelembe   [ updated 21 Feb 2011, 09:10 ]
Drinks giant Diageo announces a £1.3 billion deal to buy Turkish spirits maker Mey Icki, giving it access to the fast-growing Turkish market.
UK-DIAGEO DEAL -Drinks maker Diageo is to buy Turkey's largest spirits maker Mey Icki for 1.3 billion pounds.

The cash deal will give the world's largest spirits maker access to Turkey's fast growing market.

Diageo is hoping to tap into a local boom in raki and vodka as well as boosting sales of its own brands.

Diageo make some of the world's most recognisable alcoholic drinks such as Black Label whisky, Baileys and Guinness.

The British group is paying almost 10 times Mey Icki's earnings, before interest and tax, for a business which has 70 percent of the market share in Turkey.

The deal is set to be completed later this year.

Diageo's shares rose 2 percent in mid afternoon trade.

Hayley Platt, Reuters