Diageo buys out rival's Kenyan arm

DIAGEO, Scotland's largest whisky distiller, is to buy brewing rival SABMiller's 20 per cent stake in Kenya Breweries for $225 million (£137m).

By The Newsroom

Published 6th Jun 2011, 16:54 BST

Updated 6th Jun 2011, 22:42 BST

The deal unwinds the pair's distribution agreements covering Kenya and Tanzania.

Diageo will also dispose of its 20 per cent stake in Tanzania Breweries via a public sale on Dar-es-Salaam's stock exchange.

Analysts at Shore Capital said Diageo is re-focusing its African business on markets with the greatest potential for growth.