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Diageo Reportedly Hires Banks to Review China Assets, Including Swellfun Stake

The unconfirmed move signals further portfolio reshaping under new CEO Dave Lewis.

Overview

  • Bloomberg reported that Diageo has engaged Goldman Sachs and UBS to evaluate its Greater China operations.
  • The reported review covers the company’s 63% holding in Sichuan Swellfun and other China assets, with Diageo also owning one distillery in the country.
  • Diageo has tested preliminary interest from Chinese industry peers and private-equity firms, according to the report.
  • The company declined to comment when asked about the reported process.
  • Company disclosures show Greater China volumes rose 8.4% as net sales fell 9% organically last year, alongside portfolio shifts and recent disposals including a $2.3bn Kenya sale to Asahi.