Diageo sells majority stake in Guinness Ghana Breweries to Castel Group for $81 million

LONDON: Diageo has sold its 80.4% stake in Guinness Ghana Breweries to Castel Group for $81 million, marking a strategic shift in its African operations.

The deal, announced Tuesday, follows months of speculation about Diageo’s plans in West Africa, which the company had previously denied. 

Under the agreement, Diageo will retain ownership of the Guinness brand and other products, including Malta, Orijin, Smirnoff Ice, and Alvaro, which will continue to be produced under a long-term licensing and royalty arrangement.

This allows Diageo to maintain control over brand management and marketing while partnering with Castel, a major player in West and Central Africa. 

The sale aligns with Diageo’s asset-light operating model, aimed at optimizing its portfolio and improving efficiency. Castel, which already partners with Diageo in 11 other markets, called the acquisition a “new milestone” in its growth strategy. 

This move follows Diageo’s recent divestments in Africa, including its stake in Guinness Nigeria and the sale of Guinness Cameroon to Castel in 2022. Diageo remains active in the region through operations like East African Breweries Limited and its presence in 34 countries. 

“Guinness Ghana is performing strongly, and I look forward to the brand continuing to thrive under this partnership,” said Dayalan Nayager, president of Diageo Africa. 

The transaction is expected to close this year, pending regulatory approvals. Guinness Ghana will remain listed on the Ghanaian Stock Exchange.