Diageo cash could add venom to Cobra
Diageo is reportedly ready to take a 30% stake in Cobra Beer in a deal which could be worth as much as £30 million.
The deal would be intended to give a turbo boost to a lager which has performed strongly in the UK market, but is thought to need extra working capital and distribution muscle to achieve its national and international ambitions.
Selling a stake in the business he built up from scratch may come as something of a wrench for entrepreneur Lord Karan Billimoria, but the possibility of Cobra joining the portfolio of the world’s biggest drinks corporation may be too lucrative to resist.
Diageo – which owns Guinness and distributes Red Stripe lager – is not the only company thought to be in talks with Cobra.