Diageo may bid for Absolut owner

Drinks company Diageo is expected to bid for the Absolut vodka owners Vin & Sprit despite competition concerns, the Independentreported today.

The newspaper said Paul Walsh, chief executive of Diageo, the world's largest drinks maker, recently expressed an interest in making an approach.

Pernod Ricard and Bacardi have also told the Swedish government they would be keen on buying the state-owned company.

All three want to get their hands on the premium vodka Absolut, which has rapidly grown into a global success, said the report.

The Independentsaid Diageo could face competition issues at a regional level, but analysts believe the company can circumvent these.