Acquisition

Diageo PLC
21 December 2001

21 December 2001

Diageo closes Seagram transaction

Diageo announces that it has successfully completed its joint acquisition with
Pernod Ricard of the Seagram spirits and wine business.

This follows the US Federal Trade Commission's consent order of Wednesday 19
December, permitting the acquisition. At that time we announced that we
expected to close the deal within a matter of days and Diageo is pleased that
it has been able to achieve this.

Diageo Chief Executive Paul Walsh said: 'We are delighted with this news as it
further underlines Diageo's position as the world's leading premium drinks
business.'



ends/...

For further information:

Media enquiries to      Kathryn Partridge          + 00 44 (0) 20 7927 5225

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Investor enquiries     Catherine James           + 00 44 (0) 20 7927 5272

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Notes to editor:

Diageo is the world's leading premium drinks business.  Formed in December
1997 by the merger of GrandMet and Guinness, Diageo has an unrivalled
portfolio of brands including Smirnoff, Johnnie Walker, Tanqueray, Guinness, J
&B, Baileys, and Cuervo.

Diageo is a global company, trading in over 180 markets around the world. The
company is listed both on the London Stock Exchange (DGE) and on the New York
Stock Exchange (DEO).  For more information about Diageo, its brands, people
and performance, visit us at www.diageo.com.