Diageo to take control of UNB
British alcoholic beverages company Diageo will be taking control over South African firm United National Breweries, which is a traditional sorghum beer business.
Diageo is to acquire an additional 50 per cent stake in the company from the Vijay Mallya-controlled Pestello Investments for an initial payment of $22 million (approximately £14.8 million) and a potential earn-out payment of up to $14 million (approximately £9.4 million).
Earlier in January 28, 2013, Diageo had acquired 50 per cent interest in the company.
The transaction is yet to get approval from the South African competition authority and is likely to complete this fiscal year.
Once Diageo gets the approval, it will have complete control over the South African firm which includes investment decisions of the company as well.