Global drinks company Diageo is in talks with Cobra Beer with a view to acquire a 30% stake in the UK-based business, it has been reported.
According to the Financial Times, Cobra, which was founded by Lord Karan Bilimoria, is being courted by several different investors and is valued at roughly £100m.
Diageo, the world’s biggest drinks company, which owns brands such as Guinness and Johnnie Walker, has been on the acquisition trail of late. It recently paid £457m for a 50% stake in Dutch vodka brand Ketel and is looking to expand its global reach.
Buying a stake in Cobra could be a smart strategic move for Diageo, which is believed to be interested in emerging markets, such as Asia and Africa.
Cobra, which was originally created to serve the curry restaurant market, has a growing presence in India and it hopes that its sales there will soon outstrip its UK business.
Neither Cobra or Diageo have confirmed that they are in talks at this stage.
© Crimson Business Ltd. 2008