Diageo debuts as Guinness, GrandMet disappear

Trading in Diageo shares has got underway after completion of the £24bn pound merger between drinks giants Guinness and GrandMet.

Shares in Guinness and GrandMet were delisted by the Stock Exchange after close of trading on Tuesday and Diageo saw its shares climb from 591½p to 594p.

The enlarged group is the world's largest and most profitable wine and spirits company with combined profits of £2bn.

Diageo is the world leader in scotch whisky, gin and vodka, with brands including Johnnie Walker, Gordon's and Smirnoff.

The deal was put together earlier this year, as the international food and drinks industry undergoes a wave of consolidation, and was approved by both sets of shareholders last month.

After earlier securing the go-ahead from the European Union, on condition the combined group sells its Dewar's and Ainslie scotch brands, this week the group won approval from the US authorities, though it too demanded concessions - the sale of Dewar's and of Bombay gin.

And the deal was reached after Guinness and GrandMet reached a settlement with their largest shareholder, French drinks company LVMH.

Joint chairmen of Diageo are George Bull, from GrandMet, and Tony Greener, from Guinness, while chief executive is John McGrath.

As well as being a world force in drinks, the group is the second largest fast food chain through its Burger King restaurants, while its Pillsbury subsidiary - including Haagen-Dazs ice cream - is the fastest growing food company in the US.

The combined group, with its headquarters in London, has 85,000 employees worldwide.