Diageo PLC, the parent company of East African Breweries, has agreed to sell its 80.4% Guinness Ghana Breweries to Castel Group for $81 million. The transaction, which is priced at 5.15 Ghanaian cedis per share, will be completed in the US at an exchange rate to be agreed between the two companies.
In 2024, Diageo sold its Nigerian operations to Tolaram for $70 million having sold its Ethiopian franchise two years before that.
While Diageo has exited these businesses, it has retained ownership of the Guinness brand and has therefore been able to continue manufacturing and distributing.
The company (Diageo) and Castel will enter into a new licensing and royalty agreement that will allow the company to continue manufacturing, producing and distributing Guinness and other Diageo brands currently produced by Castel. It has offices in Ghana. Guinness Ghana produces Guinness, Malta, Orijin, Smirnoff Ice and Alvaro.
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The brewer will continue to be listed on the Ghana Stock Exchange and Diageo will retain ownership of the brand. The transaction is expected to be completed in 2025 but is subject to regulatory approval, the company said in a statement. Diageo has previously denied rumours in the industry that it would sell some of its brands and minority stakes.
In Africa, Diageo currently operates in East African Breweries (Kenya, Uganda and Tanzania) and Diageo South West Central. The company, which is listed on the London and New York stock exchanges, has beer and spirits distributors in 34 countries.
The French multinational beverage company Castel Group operates in West and Central Africa and works with Diageo in 11 markets on the continent.
