Diageo and Suntory, a Japan-based brewing and distilling company group, held discussions in spring and summer of 2012 to purchase Beam’s bourbon whiskey brand - Jim Beam - for approximately $10bn.
Diageo has reportedly been looking for the deal since the beginning of 2012 but is forced to push back due to several other takeover deals, including the recent purchase of 53% stake in Indian-based United Spirits for £1.3bn and another unfinished deal with Mexico family for purchase of Jose Cuervo tequila brand for £3bn.
Before Suntory, Diageo also held talks with other private equity firms about Beam.
The strategy of working with a partner for a joint deal would help the company compete with Bacardi and Pernod Ricard, who showed interest in Beam before Fortune Brands, Beam's former parent company, broke itself into Fortune Brands Home & Security and Beam Inc.
Diageo is being helped by Goldman Sachs, Citigroup and UBS for the potential acquisition and talks with Suntory.
