It was reported 7 October that Diageo has offloaded its brewing interests in Jamaica, Malaysia and Singapore to Dutch rival Heineken in a deal worth $780.5 million, while increasing its stake in Ghanian brewer, Guinness Ghana Breweries. The three part deal covers three continents and will see the Dutch brewer take control of Jamaican brewer Desnoes & Geddes, which produces Red Stripe and Dragon, having acquired Diageo’s 57.9% stake. Heineken already owned 15.5% of the company, taking its stake in the company to 73.3%. It is expected to make an offer for the remaining shares in accordance with the Jamaican Takeover Code. The transaction will see Diageo’s international distribution rights to Red Stripe lager transferred to Heineken. Heineken has also acquired Diageo’s 49.99% stake in GAPL Pte Limited (GAPL), which is listed on the Malaysian Stock Exchange, taking its stake to 100% and giving it full ownership. GAPL is the licensee for Guinness and ABC Stout distribution for the Singapore market. “Having greater commercial control in the important regions of South-East Asia and the Caribbean will allow us to maximize the strong potential of our brands in these growth markets,” said Heineken’s chief executive officer Jean-Francois van Boxmeer in a statement. Finally, Diageo has bought Heineken’s 20% stake in Guinness Ghana Breweries Limited (GGBL), a company listed on the Ghanaian Stock Exchange, taking its stake to 72.4%. However GGBL will continue to be Heineken’s exclusive distributor in Ghana.
