UK alcoholic drinks giant Diageo plans to buy a controlling stake in the parent of baijiu maker Shui Jing Fang for a total of US$935.5 million, the Wall Street Journal reported. Diageo has agreed to increase its 49% stake in Chengdu Quanxing Group to 53% for US$20.93 million; Quanxing owns 40% of Shui Jing Fang. The British company would then make a tender offer of up to US$911.95 million for the remaining 60% of the baijiu brand, an offer subject to shareholder approval. Baijiu makes up about half of China’s alcoholic beverage sector by volume.
For more on China’s baijiu industry, see this story from our February issue.