Diageo sells brewing stakes to Heineken

Diageo has sold its interests in Desnoes & Geddes and Guinness Anchor Berhad to Heineken NV and bought additional shares in Guinness Ghana Breweries.

The sale of Diageo’s 57.87% shareholding in Desnoes & Geddes increases Heineken’s stake in the company to 73.32%, while the sales of GAPL Pte gives the Dutch brewer full ownership.

In addition, Diageo will acquire Heineken’s 20% stake in Guinness Ghana Breweries, increasing its shareholding to 72.42%.

Diageo said the net cash consideration receivable for the deal is $780.5m, or around £515m.

The company said payment will be substantially settled on Wednesday and will be used to reduce borrowings. It said the transaction will result in an exceptional profit on disposal of around £440m after tax.

Chief executive Ivan Menezes said: “The transaction we have announced today continues our proactive approach to our portfolio, enhancing our focus on the core to achieve Diageo's performance ambition.

It provides a strong route to consumer for Guinness which will grow the brand in these markets. I am pleased that this transaction meets the clear strategic objectives of both Heineken and Diageo.'