Diageo Snaps Up Half of New Business
Published on Jan 11 2013 10:28 AM in General Industry
Diageo has agreed to pay US$36m for a 50 per cent interest in United National Breweries' traditional sorghum beer business in South Africa.The acquisition will enable the company to form a 50:50 JV with Dr Vijay Mallaya, chairman of United Spirits and United Beverage Holdings, that will own United National Breweries' traditional sorghum beer business in South Africa, according to businessandleadership.com. On 9 November 2012, Diageo and Dr Mallya announced they had entered into a memorandum of understanding under which they would form the joint venture. The remaining 50pc of the business will be held by a company affiliated to Dr Mallya. The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in the first half of this year.