Diageo completes China deal

Diageo yesterday completed its tender offer for Chinese liquor maker Sichuan Shuijingfang, which it was compelled to undertake, with negligible uptake and so stays as the largest shareholder in China's No 4 white spirits group. Diageo bought a four per cent stake in joint venture Sichuan Chengdu Quanxing last July to bring its stake to 53 per cent, and under Chinese rules because Quanxing itself holds 39.7 per cent in Shuijingfang, Diageo was compelled to launch a tender offer for all the remaining shares in Shuijingfang. UBS acted as offshore adviser to Diageo on the deal.