Diageo-backed East African Breweries Limited is now free to complete its acquisition of a stake in Serengeti Breweries. Photo/FILE
Competition for control of the lucrative Tanzanian and Kenyan beer markets looks set to break out once again after the world’s largest brewers, SABMiller and Diageo, agreed to settle their drawn out dispute over the two markets.
In a deal reached on Wednesday, Diageo-backed East African Breweries Limited is now free to complete its acquisition of a stake in Serengeti Breweries while SABMillers products will continue being brewed and distributed in Kenya.
It was not immediately clear who would hold SABMillers interests in Kenya.
A joint venture between the two brewers meant to help stop the huge revenue losses they had suffered in a battle for control of the Kenya and Tanzania beer markets ended on the rocks mid last year, driving the partners to an equally expensive legal battle.
In the new deal, Tanzania Breweries will cease to brew and distribute EABL’s brands in Tanzania following a transitional period, EABL said in a statement.
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