Drinks group Diageo has agreed the $552m sale of its major wine interests to Treasury Wine Estates, as part of its drive to shed non-core assets. 

It said the deal is for its US-based Chateau and Estate Wines and the British based Percy Fox businesses. 

Diageo plans to use net proceeds of about £320m after tax and transaction costs to repay borrowings. 

The deal, which is subject to regulatory approval, is expected to complete around the end of the calendar year.