Yesterday, Diageo, a European company, has confirmed that they have reached an agreement with Casa Cuervo to purchase outright and control their Tequila Don Julio brand. At a cost of 480 million dollars, the Mexican drink has now been transferred to the hands of the foreign company.

Casa Cuervo and Diageo will conclude negotiations in 2015, as there is a protocol that will be followed in order for the transaction to be approved. The agreement will also contemplate that Casa Cuervo will acquire the Bushmillls brand.

"I am sure that this strategic sale will allow Jose Cuervo to continue growing in other categories and develop our business in Mexico and around the world for another 250 years", said the company's director. It is estimated that Casa Cuervo is valued at around 3 billion dollars in large part thanks to the variety of its portfolio.

With the partnership with Diageo, Casa Cuervo will be able to focus its sights on growing in the foreign market, and particularly in the UK and United States. This deal has been in the works for about two years, and was first rumored in August 212 during an annual meeting held by Diageo.

"Don Julio" Tequila is yet another Mexican brand that has gained international recognition to fall in the hands of foreign companies. Other examples include Grupo Modelo, which was acquired by Belgian company Anheuser-Bush and paint company Comex, which was bought out by Sherwin-Williams.

Via Aristegui Noticias-Notimex

Brenda.Colon@sandiegored.com

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