Diageo confirms £23m Mallya beer deal

Diageo has confirmed it is to buy 50% of United National Breweries’ sorghum beer business in South Africa for £23m (US$36m).

The deal, which was first announced in November last year when Diageo revealed its intentions to buy a 53.4% share of United Spirits, will see the drinks group create a 50:50 joint venture with Vijay Mallya.

Today Diageo confirmed the deal would be going ahead as first outlined, subject to consent from South African competition authority. It is expected to complete in the first half of the year.

Diageo’s move to acquire over half of United Spirits has since been delayed by local regulators in India.