London-based beverage company Diageo is in preliminary discussions to acquire Turkish spirits maker Mey Icki, according to a report that appeared in the Wall Street Journal Thursday.
The deal would value Mey Icki between $2 billion and $2.5 billion, the report stated.
The spirits market in Turkey in 2009 was valued around $1.59 billion, the report said. Mey Icki garnered more than $860 million of that total.
Private equity firm TPG Capital, the current owner of Mey Icki, purchased the formerly state-owned beverage company for around $800 million in 2006.
If TPG does not reach a deal with Diageo or another buyer, there remains the possibility that the firm could carry out an initial public offering of Mey Icki, the report said.
Diageo's brand portfolio includes beverages such as Smirnoff, Baileys Original Irish Cream and Jose Cuervo tequila. The company also has the global stout brand, Guinness.