Diageo ends talks on Cuervo tequila

Drinks maker Diageo this morning announced that long-running discussions between it and the Jose Cuervo tequila brand have ended.

The talks, which have been in the offing for more than a year, had been widely expected to result in a deal for the world’s number one tequila brand.

A short statement from the FTSE 100 firm said that discussions had ended, and both parties would work to ensure the “orderly termination of the current distribution agreement” by the end of June next year.

Chief executive Paul Walsh this morning said: “We believe that the future of the brand would be best delivered by aligning ownership of the brand with its route to market and I have no doubt that Diageo has the best route to market for this brand.

“However it has not been possible to agree a transaction which delivers value for Diageo's shareholders and therefore, by mutual agreement, we have terminated our discussions.'