Guinness brewer Diageo is set to take full control of United National Breweries by acquiring the remaining 50 per cent of its traditional sorghum beer business in South Africa it did not already own in a deal worth up to $36m (£24.2m/€33.3m).
The company originally entered into an agreement to acquire 50 per cent of the interest in January 2013 and is now set to acquire the remaining half from Pestello Investments.
The value of the deal will be an initial payment of $22m (£14.8m/€20.3m) and a potential earn-out payment of up to $14m (£9.4m/€12.9m).
Once completed, the transaction will give Diageo control of the sorghum beer business in South Africa, made by UNB, including the ability to make investment decisions to support the continued growth of the company's brands in the sorghum beer category.
The transaction is conditional on consent from the South African competition authority and is expected to complete in this fiscal year.
