Heineken has announced its has acquired stakes in joint ventures from Diageo for $781m, taking control of Jamaica’s maker of Red Stripe beer and helping shore up control in other regions.
The Ducth brewer has acquired a 57.9% stake in Jamaica’s Desnoes & Geddes, the maker of Red Stripe, and now has full ownership of Malaysia’s GAPL Pte Ltd
It will own 73.3% of D&G following the transaction and said it would later make an offer for all remaining shares.
“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 chief executive Jean-Francois van Boxmeer.
At the same time, Diageo, which will book a one-time profit on the transaction of £440m after tax, announced it had acquired a20% stake in Guinness Ghana Breweries from Heineken.
Ivan Menezes, chief executive of Diageo, 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.”
