World's largest distiller, Diageo Plc has scrapped its plans to acquire Cuervo tequila as it ended discussions with Cuervo owners JB y Compania SA de C. V. and Lanceros S. A. de C. V.

The London-based distiller is also aiming to conclude its 26-year-old agreement to distribute the brand. Diageo's agreement to distribute tequila outside Mexico is set to finish in June, 2013. The company had an option to acquire the company under that agreement and had hired Goldman Sachs and HSBCfor getting advice on the matter.

Paul Walsh, chief executive officer of said in a statement that discussions with Cuervo owners were not able to create any value for Diageo shareholders. The company was finding ways to get control of the company from Cuervo's family owners, the Beckmanns. The Mexican brand is valued at more than $3 billion in the market.

According to experts the absence of the tequila brand will not significantly alter the company. The conclusion of the Cuervo distribution agreement might result in earnings per share expectations from 2014, according to analysts.

The maker of Johnnie Walker is looking to expand its presence outside Europe and wants to get half of its net sales from outside of the region. It recently picked up a stake in United Spirits Ltd. (UNSP) to gain leadership in India, which is the world's largest whiskey-consuming nation.