Diageo, the world's biggest drinks company, has ruled itself out of the bidding for Absolut vodka after paying $900million (£460million) for a 50 per cent stake in Ketel One, a “super-premium” vodka found behind some of the world's most exclusive bars.

The acquisition came as the Edrington Group, the Scotch whisky company behind the Famous Grouse, announced the purchase of a 60 per cent stake in the company that makes Brugal, one of the world's bestselling premium rums, for a figure estimated to be more than £200million.

The withdrawal of Diageo from the auction of Vin & Sprit (V&S), the state-controlled group behind Absolut, leaves the field clear for Bacardi, of Bermuda, Pernod Ricard, of France, and Fortune Brands, together with the Swedish investment firms EQT and Investor. Analysts believe that Fortune Brands, the American owner of Jim Beam bourbon and Sauza tequila, is the front-runner in an auction estimated at €6billion (£4.5billion).

Fortune already controls the distribution rights to Absolut in America, its biggest market, through its Future Brands joint venture with V&S. V&S owns 49 per cent of the joint venture and a 10 per cent stake in Fortune Brands itself.

Paul Walsh, Diageo's chief executive, agreed that the V&S auction was “very much in favour of the incumbent”. He said that one of the advantages of the Ketel One deal was that there had been no competitive bidding process.

Mr Walsh said that Ketel One, which sells 1.9million cases, also had much greater growth potential than Absolut, both in America, which accounts for the majority of its sales, and internationally. He said that, over several years, he could see the brand doubling in size.

Diageo is buying the stake from the Dutch family that founded Ketel One in 1691. The Nolet family will continue to own the rights to the brand, while its new British partner will become the exclusive distributor. Under the terms of the deal, the Nolet family will be able to offer Diageo the other 50 per cent of the business in the fourth or fifth year after completion for $900million, plus interest.

Analysts said that, although it was paying a full price, the acquisition made sense strategically. Evolution Securities described it as “a classic deal for Diageo, as it fills in a gap in its portfolio and enables it to leverage its distribution”.

Meanwhile, Edrington is making its first foray outside Scotch whisky by adding a golden rum that sells five million cases globally. Brugal, which is made in the Dominican Republic, is the world's third-biggest selling rum, behind Bacardi and Captain Morgan. The stake is being sold by the founding Brugal family, who will continue to have an active role in the business.

Edrington, which is controlled by a charitable trust, is funding the purchase from its cash reserves and bank debt from a group that includes Lloyds TSB, Royal Bank of Scotland and HSBC.

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