Diageo PLC, the parent company of East African Breweries, has agreed to sell its 80.4% stake in Guinness Ghana Breweries to Castel Group for US$81 million as part of its “flexible and asset-light” business model.
- The transaction, valued at 5.15 Ghanaian Cedis per share, will be completed in US dollars at an agreed exchange rate by the two companies.
- In September 2024, Diageo sold its Nigerian unit to Tolaram valued at US$70 million, two years after exiting Meta Abo Brewery in Ethiopia and Guinness Cameroon to Castel.
- While Diageo divested from these markets, it has retained ownership of the Guinness brand which allows for continued production and distribution.
“The Company (Diageo) and Castel will enter into new licence and royalty agreements to allow the Company to continue to brew, produce and distribute Guinness and the other Diageo brands which are currently produced by the Company in Ghana,” Diageo said in a statement. Guinness Ghana produces Guinness, Malta, Orijin, Smirnoff Ice and Alvaro.
The brewer will remain listed on the Ghana Stock Exchange with Diageo retaining ownership of the brands. In a statement, the company expects the deal to be complete in 2025 and remains subject to regulatory approvals. Diageo had previously denied market rumours that it was going to sell some of its brands and minority shareholding.
In Africa, Diageo currently has footing in East African Breweries – Kenya, Uganda and Tanzania – and Diageo South West Central. Listed on both the London and New York Stock Exchanges, the company exists in 34 countries with beer and spirit distributors.
Castel Group, a French beverage multinational, is present in West and Central Africa, and partners with Diageo in 11 markets on the continent.
