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Diageo to release next ‘tranche’ of its share buy back

By Jenny McCall

07:58, 26 November 2021

Bottles of assorted global hard liquor brands including whiskey, vodka, tequila and gin
Drinks company enters into agreement with Goldman Sachs to help buyback – Photo: Shutterstock

The London-headquartered multinational beverage alcohol company Diageo announced on Friday that it would release the next quota of its return of capital programme (ROC), which meant giving up to £4.5bn ($6bn) to shareholders by 30 June 2024.

Diageo, which owns liquor brands such as Johnnie Walker, Smirnoff, Cîroc, Ketel One vodkas, Captain Morgan Rum and Baileys Liqueur, said the first phase of the ROC programme got completed on 31 January 2020, which saw Diageo repurchase shares to the value of £1.25 billion.

On 12 May 2021, the second stage of Diageo’s programme was launched of up to £1.0 billion, to be completed by the end of the financial year 2021-22. Under the first tranche of the second phase, completed on 12 November 2021, Diageo repurchased shares to a value of £0.45 billion.

Share buyback

“Diageo is announcing today that it has entered into a non-discretionary agreement with Goldman Sachs International (GSI) to enable the company to buy back shares with a value of up to £0.55 billion,” the statement said.


41,800.65 Price
+5.000% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


15,800.90 Price
-1.200% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

Oil - Crude

73.37 Price
-1.540% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee -0.0019%
Overnight fee time 22:00 (UTC)
Spread 0.040


0.62 Price
-0.720% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

“The purpose of the repurchases is to reduce the share capital of Diageo and all shares repurchased under this agreement will be cancelled.”

The share buyback tranche of up to £0.55 billion will take place within the limitations of Diageo’s existing general authority to repurchase up to 233,611,282 shares, which was granted at its 2021 annual general meeting.

Diageo share price was down in early morning trade today by 2.56% at £38.14. 

Read more: Diageo reports strong results but warns of Covid challenges

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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