The list of brands to be sold to Sazerac includes: Seagram's whisky and Romana Sambuca.

The net proceeds of approximately £340 million, after tax and transaction costs, will be returned to shareholders through a share repurchase following completion. The transaction, which is subject to regulatory approval, is expected to complete early in 2019.

Ivan Menezes, chief executive of Diageo, says: “Diageo has a clear strategy to deliver consistent efficient growth and value creation for our shareholders. This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time. Today’s announcement is another example of this strategy in action. The disposal of these brands enables us to have even greater focus on the faster growing premium and above brands in the US spirits portfolio.”

The full list of brands included in the transaction are: Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth’s and John Begg.

Diageo has also agreed to enter into long-term supply contracts with Sazerac on completion for five of the brands each for a period of ten years. Supply of all other brands will transition to Sazerac within a one year period from completion.