Diageo to pick 50% in Mallya’s South Africa beer co for $36 m
United National Breweries is a maker of traditional South African beer called ‘Umqomboti’, and Diageo has previously said it was considering the possibility of extending this joint venture to tap opportunities in emerging markets in Africa and Asia.
“Diageo today announces that it has entered into an agreement to acquire a 50% interest in the company which owns United National Breweries’ traditional sorghum beer business in South Africa. The remaining 50% will be held by a company affiliated to Dr Mallya,” said a release from the company.
Diageo had entered into a memorandum of understanding with Mallya on the South African joint venture in November, alongside its deal to acquire a majority stake in the UB Group’s flagship company in India, United Spirits (USL). The acquisition has been delayed beyond initial estimates as the R 5,441-crore open offer to acquire a 26% stake from the public shareholders of USL is awaiting clearance from Sebi and the Competition Commission of India (CCI).
The open offer application is under process, according to a January 18 update from Sebi, which had earlier sought clarifications from the offer manager
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