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Treasury Wine Estates tipped as favourite to take Blossom Hill and Piat d'Or off Diageo's hands

Published:  01 October, 2015

Treasury Wine Estates has refused to comment on speculation that it is lining up an acquisition of Diageo's Blossom Hill brand and the rest of its wine business.

Sky News reported that the Australian wine producer - whose brands include Penfolds, Wolf Blass and Lindemans - is looking to complete a deal for the Diageo wine unit which also includes Piat d'Or.

A spokeswoman for TWE in Australia told "We don't comment on market speculation or rumour."

In addition to its major wine brands, Diageo owns the UK wine merchant Justerini & Brooks and the Percy Fox distribution company, which handles Blossom Hill and Piat d'Or, along with others such as Yellow Tail of Australia and Santa Carolina from Chile.

There has been speculation since the spring that Diageo would offload its wine unit with chief executive Ivan Menezes under pressure from the City to dispose of non-core businesses.

Wine counts for 4% of Diageo's net sales.

Sky News quoted a Diageo spokesman saying: "Wine is a small part of our business but it plays an important role."