UK-based Diageo will purchase 50% stake in a joint venture (JV), which owns United National Breweries' (UNB) traditional sorghum beer business in South Africa, for $36m.
The remaining 50% will be owned by a company affiliated to Vijay Mallya, Chairman of UNB and UB Group of India, according to British multinational alcoholic beverages company.
The agreement is subject to customary adjustments and consent from the South African competition authority.
The transaction is scheduled to be closed in the first half of 2013.
On 9 November 2012, Diageo and Mallya had signed a memorandum of understanding to establish a 50:50 JV that would own UNB's traditional sorghum beer business in the country.
Source:
http://www.drinks-business-review.com/news/diageo-to-buy-stake-in-unbs-sorghum-beer-business-in-south-africa-290113
