It was a deal that should have been sealed with a tequila slammer, but instead round of tequila suicides await at the bar (snort the salt, squeeze the lime in your eye). The $3bn takeover of Jose Cuervo by Diageo has been shelved indefinitely, following a breakdown in discussions.
Diageo CEO Walsh has accepted the decision, but maintains it was a poor one: ''I have no doubt that Diageo has the best route to market for this brand,' he says. Indeed, Diageo and Jose Cuervo have enjoyed a lucrative partnership in the US for over a decade.
However, the Beckmann family are keen to hold onto their investment. Diageo and its shareholders simply couldn't raise their bid any higher. Or, in management speak: '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,' says Walsh.