Diageo ends long-running talks on Cuervo

LONDON Tue Dec 11, 2012 2:10am EST

LONDON Dec 11 (Reuters) - British drinks group Diageo said on Tuesday that its long-running talks to buy world's no. 1 tequila maker Jose Cuervo had ended.

Diageo and Cuervo's owners would work to ensure an orderly termination of their current distribution deal, Diageo 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," said Diageo chief executive Paul Walsh.

"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."