Diageo splashes out €20m on South African drinks company
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.
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.