Diageo Unit To Sell Stake In SABMiller Subsidiary

Diageo's core East Africa-region subsidiary East African Breweries Limited (EABL) is to sell 10% of a 20% equity stake it holds in SABMiller's Tanzanian operation Tanzania Breweries Limited (TBL). Preconditioning the regulatory approval granted to EABL by the Tanzania Fair Competition Commission to acquire Tanzania's second biggest beer company Serengeti Breweries earlier in 2010, the share exchange agreed between Diageo and SABMiller in 2002 that essentially carved apart the East African beer industry is becoming increasingly less relevant, which CFWbelieves is better news for EABL than SABMiller.

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