October 14, 2015 / 7:34 AM / 2 years ago

Diageo sells U.S., UK wine interests for $552 million

LONDON (Reuters) - Drinks group Diageo DGE.L has agreed the $552 million sale of its major wine interests to Treasury Wine Estates, it said on Wednesday, as part of its drive to shed non-core assets.

A man walks past barrels outside the Diageo Shieldhall facility near Glasgow, Scotland August 26, 2010. REUTERS/David Moir

It said the deal is for its United States based Chateau and Estate Wines and the British based Percy Fox businesses.

Diageo plans to use net proceeds of about 320 million pounds ($489 million) after tax and transaction costs to repay borrowings.

The deal, which is subject to regulatory approval, is expected to complete around the end of the calendar year.

($1 = 0.6544 pounds)

Reporting by James Davey; editing by Kate Holton

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