Diageo has sold an 80.4% stake in Guinness Ghana Breweries to Castel Group for $81 million while retaining brand ownership and licensing production rights.

Target Company Overview

Diageo has executed a significant transaction, divesting an 80.4% stake in Guinness Ghana Breweries to Castel Group for a total consideration of $81 million. This strategic move strengthens the partnership between Diageo and Castel Group while allowing Diageo to maintain its brand ownership over the iconic Guinness label and other brands produced by the brewery.

Under the terms of the deal, Diageo will license the production of its brands, which include Guinness, Malta, Orijin, Smirnoff Ice, Alvaro, and various mainstream spirits, to Guinness Ghana. This arrangement will be formalized under a long-term license and royalty agreement, ensuring continuity in the production and marketing of these brands within the Ghanaian market.

Industry Overview in Ghana

The Ghanaian beverage industry has exhibited robust growth, driven by increasing consumer demand for alcoholic and non-alcoholic beverages. The market's dynamics are shaped significantly by a young and grow