Diageo PLC has finalised the sale of its 80.4% stake in Guinness Ghana Breweries PLC (GGBL) to Castel Group for $81 million.
The transaction however includes a long-term licensing and royalty agreement that allows Guinness Ghana to continue producing Diageo’s key brands, including Guinness, Malta, Orijin, Smirnoff Ice and Alvaro.
Diageo will focus on marketing and brand strategy for Guinness while leveraging Castel’s extensive distribution network across West and Central Africa.
The deal also strengthens Castel’s footprint in Africa’s beverage market while ensuring Diageo retains influence over its flagship Guinness brand.
Guinness Ghana will maintain its listing on the Ghana Stock Exchange, with no immediate changes to its operations or workforce.
The sale is expected to close by the end of the year, pending regulatory approvals.
Dayalan Nayager, President of Diageo Africa and Chief Commercial Officer, expressed optimism about the deal, stating, “Guinness Ghana is performing strongly, powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand thriving and delivering further growth. I am excited to extend our partnership with Castel, a long-term regional partner with a proven track record.”
Gregory Clerc, Castel’s Chief Executive Officer, highlighted the strategic significance of the acquisition. “This exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition. It reflects our ability to go where we are least expected, exploring new horizons on a continent full of opportunities. With this acquisition, we reaffirm our dynamism, boldness and confidence in Africa’s potential,” Clerc noted.
Castel, a prominent player in Africa’s beverage industry, views the acquisition as an opportunity to deepen its reach in Ghana, building on its decades-long presence in the region.
The deal marks Castel’s entry into its 22nd African market, underscoring its commitment to expansion across the continent.
It also highlights Diageo’s evolving strategy in Africa, shifting from ownership to partnerships that emphasise brand management and market presence.