Diageo to form JV for South African beer business

Alcoholic beverages company Diageo has reached an agreement to form a 50:50 joint venture in respect of United National Breweries' traditional sorghum beer business in South Africa.

Alcoholic beverages company Diageo has reached an agreement to form a 50:50 joint venture in respect of United National Breweries' traditional sorghum beer business in South Africa.

The FTSE-100 listed drinks company stated that it had reached an agreement with Dr Mallya, an investor, to enter into a memorandum of understanding under which both parties would form the joint venture.

In addition to announcing its joint venture, Diageo stated that it had entered into an agreement to acquire a 50% interest in the company which owns United National Breweries' sorghum beer business. It stated that the remaining 50% would be held by a company affiliated with Dr Mallya.

Diageo is to acquire its 50% interest for $36m (approximately £23m), subject to customary adjustments.

The transaction, which is conditional on both parties receiving consent from the South african competition authority, is expected to be completed in the first half of the year.

MF

Recommended

HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022
How to be better at selling stocks
Investment strategy

How to be better at selling stocks

There is plenty of advice around about buying stocks, but not so much about when you should sell. John Stepek explains the two key things to know abou…
14 Jan 2022
Share tips of the week – 14 January
Share tips

Share tips of the week – 14 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
14 Jan 2022
Fintech: how to profit as technology transforms banking around the world
Share tips

Fintech: how to profit as technology transforms banking around the world

Financial technology – from apps to APIs to the cloud – is rapidly transforming financial services. This will spell doom for some incumbent firms, whi…
14 Jan 2022

Most Popular

US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022
Tech stocks teeter as US Treasury bond yields rise
Tech stocks

Tech stocks teeter as US Treasury bond yields rise

The realisation that central banks are about to tighten their monetary policies caused a sell-off in the tech-heavy Nasdaq stock index and the biggest…
14 Jan 2022