Diageo Sells Wine Interests In Argentina To Grupo Penaflor

(RTTNews) - Diageo Plc (DGE.L, DEO) Thursday announced an agreement to sell its wine interests in Argentina to Grupo Peñaflor. The financial aspects of the deal were not revealed.

The deal is expected to be earnings per share neutral in the first full year on closing of the deal and would result in an exceptional pre-tax loss of around 60 million pounds. The transaction is expected to be completed early in 2016.

The sale includes the Navarro Correas and San Telmo wine brands, with production sites and vineyards. As per the agreement, Peñaflor will be the distributor of Diageo's international spirits brands and, after an interim period, will jointly produce with Diageo its domestic spirits brands across Argentina.

Diageo said the appointment of a distributor would strengthen its route to market and is expected to accelerate the performance of its brands there.

Wine interests in Argentina has recorded net sales of 18.5 million pounds on June 30, 2015.