Jan 13 (Reuters) - Diageo is weighing options for its China assets, including a sale, Bloomberg News reported on Tuesday, citing people familiar with the matter, as the world's largest spirits maker
Diageo considering options including sale for China assets, Bloomberg News re...
Diageo's Strategic Review of Chinese Assets
Jan 13 (Reuters) - Diageo is weighing options for its China assets, including a sale, Bloomberg News reported on Tuesday, citing people familiar with the matter, as the world's largest spirits maker looks to streamline its portfolio.
Market Challenges Facing Diageo
London-listed Diageo is grappling with tariff hikes in its key U.S market, high debt levels and indications that some younger consumers could be shifting away from drinking alcohol. In November, it had flagged a double-digit decline in sales in China.
Recent Divestments by Diageo
The report comes after the maker of Johnnie Walker whisky and Captain Morgan rum last month said it would sell its 65% stake in East African Breweries for $2.3 billion, divesting its last direct African beer holding.
Collaboration with Financial Advisors
Diageo is working with Goldman Sachs and UBS to review operations, including a more than 63% stake in Sichuan Swellfun, which distributes the Chinese distilled spirit Baiju, Bloomberg News said.
Reuters could not immediately verify the report. A spokesperson for Diageo declined to comment. Sichuan Swellfun could not be immediately reached for comment.
(Reporting by Pushkala Aripaka and Rishab Shaju in Bengaluru, and Emma Rumney in London; Editing by Eileen Soreng)
