2nd Apr 2015 06:17
LONDON (Alliance News) - Drinks giant Diageo PLC Thursday said it will take full control of United National Breweries' traditional sorghum beer business in South Africa by buying the 50% stake in the business it didn't already own for up to USD36 million.
The company said it will buy the stake in the company that owns United National Breweries' traditional sorghum beer business in South Africa from Pestello Investments Inc for an initial payment of USD22 million, or about GBP14.8 million, and a potential earn-out payment of up to USD14 million, or about GBP9.4 million.
The deal needs to be approved by the South African competition authority, but Diageo expects the deal to complete in the current fiscal year.
"Once completed, this transaction will give Diageo control of the leading traditional sorghum beer business in South Africa, including the ability to make investment decisions to support the continued growth of United National Breweries' brands in the sorghum beer category," it said.
By Steve McGrath; [email protected]; @stevemcgrath1
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