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Diageo to acquire Turkish distiller
22 February 2011: Diageo plans to acquire Mey Icki in a transaction that values Turkey based largest maker of Raki at 3.3 billion Turkish lira (approx $2.1 billion).
The acquisition will add 1 per cent to Diageo’s earnings per share in the first year of ownership. The deal will be funded through existing cash resources and debt.
This investment represents the continuation of our strategy to increase Diageo’s presence in those emerging markets, such as China and Vietnam, which have a rapidly growing middle class.
Diageo, the owner of Smirnoff vodka and Johnnie Walker Scotch whisky, aims to make acquisitions in markets where growth is the fastest. Mey Icki controls 80 per cent of the market for Raki.
Source: Businessstandard