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Diageo acquires Turkish drinks company Mey for $1.3bn

The deal will give Diageo access to the growing Turkish drinks market.

Image: arteunporro via Creative Commons

DRINKS COMPANY DIAGEO has agreed a $1.3 billion deal with a leading Turkish spirits company, which will give it access to the growing drinks market within the country.

The deal between the owner of Turkish spirits giant Mey Icki, US private equity group TPG Capital, and Diageo was confirmed today, reports the Wall Street Journal. Mey Icki has a vast distribution network in Turkey, with about 50,000 retail outlets across the country.

The company also has nearly an 80 per cent share of the market for the spirit raki – an aniseed-based alcoholic beverage considered to be the national drink.

Many western drinks companies are engaged in strategies to expand into developing markets like Turkey, reports the Telegraph.

Charles Stanley analyst Sam Hart told the WSJ: “It is a significant growth market, with a growing middle class and international beverages which provide the platform for growth.”

RTÉ reports that Mey Icki had net sales of approximately €350m last year. In a statement today, Diageo said today that acquisition will add 1 per cent to Diageo’s earnings per share in the first year of ownership.

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