Diageo confirms $400m Bushmills sale to Mexican giant

Global drinks giant Diageo has confirmed the disposal of iconic Irish whiskey brand Bushmills as part of a $400m (€320m) deal to strengthen its presence in the global tequila market.

Reports surfaced over the weekend that Diageo — which owns the likes of Guinness and Baileys, as well as numerous other well-known international drinks brands such as Captain Morgan rum — was nearing agreement with Mexican tequila label Jose Cuervo for control of its Don Julio tequila, in exchange for global ownership of Bushmills.

Yesterday, Diageo confirmed it had agreed terms, which will see it take global ownership of Tequila Don Julio, with Cuervo’s current production and distribution rights for Smirnoff vodka in the Mexican market ending.