Monday 5 December 2016

Diageo splashes out €20m on South African drinks company

Paul O'Donoghue

Published 02/04/2015 | 07:41

A worker walks past the headquarters of Diageo in London.
A worker walks past the headquarters of Diageo in London.

Irish-listed drinks giant Diageo is paying just over €20m to buy out the remaining 50pc interest of a South African drinks business which it did not already own.

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Diageo announced in 2013 that it had entered into an agreement to acquire a 50pc interest in the company which owns United National Breweries' traditional sorghum beer business in South Africa.

Diageo is now buying the remaining 50pc of the business from a company called Pestello Investments for an initial payment of €20.3m and a potential earn-out payment of up to €13m.

This will make United National Breweries a wholly-owned subsidiary of Diageo.

The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in this fiscal year.

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