Ghana: Diageo to sell entire stake in Guinness Ghana to Castel Group

Diageo has announced plans to sell 80.4% shareholding in Guinness Ghana Breweries plc to Castel Group for $81 million (€77.7 million).

Diageo added that it will retain ownership of the Guinness brand, and other Diageo brands currently produced by Guinness Ghana.

These will be licensed to Guinness Ghana under a new long-term license and royalty agreement.

The portfolio includes Guinness, Malta, Orijin, Smirnoff Ice and Alvaro, and other mainstream spirits.

The deal, subject to regulatory approvals, is expected to close this calendar year.

Dayalan Nayager, president Diageo Africa and chief commercial officer, said, “Guinness Ghana is performing strongly powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth.

“I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record.”

The latest transaction is part of Diageo’s portfolio management and commitment to building an efficient operating model in West Africa for long-term and sustainable growth.

In September 2024, Diageo sold its shareholding in Guinness Nigeria plc to Tolaram to accelerate the growth of Guinness in Nigeria.

The company also announced a a wholly-owned dedicated spirits company in October 2023 to consolidate Diageo’s international premium spirits business and serve a wider geographic reach across West Africa. In 2022, it sold Guinness Cameroon to Castel.

Diageo’s footprint across Africa comprises East African Breweries Limited for Kenya, Tanzania and Uganda and Diageo South West Central.

Recently, the company said it does not intend to sell its beer brand Guinness or its stake in Moët Hennessy, LVMH's drinks unit.

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