The remaining 50% will be held by a company affiliated to Dr Vijay Mallya of United Breweries.

Diageo will acquire its 50% interest for $36 million (approximately £23 million), subject to adjustments. The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in the first half of this year.

On November 9 2012, Diageo and Mallya entered into a memorandum of understanding under which they would form a 50:50 joint venture, which would own United National Breweries’ South African sorghum beer business.