Back in 2014 there were reports that SABMiller and Diageo were eyeing up a merger, and now nearly 12 months on there is speculation that Anheuser-Busch InBev are lining up a bid for the London-based Diageo.
The market has seen the share price for Diageo stock slip over the last year but, on the release of the rumours, there was a share price surge on both Wall Street and the London Stock Exchange - London seeing the share price increase by 8% to an 18-month high.
Taking over the entire Diageo portfolio might be an option for AB InBev as they represent 20% of the beer sector whereas any deal by SABMiller, the second largest global brewer, would have to be closer to a merger of equals.
The interest in Diageo most likely stems from Guinness and its strong African brewing portfolio with generate over 15% of their total sales. With Africa known to be a target for SABMiller, and the region being an area widely predicted for growth, an opportunistic takeover bid becomes a viable option.
Watch this space over the next few weeks.