No financial details of the deal have yet been released, with Castel acquiring Diageo’s 80.4% in Guinness Ghana.
Moving forward, the drinks giant will retain ownership of the Diageo brands that are produced by Guinness Ghana (such as Guinness, Malta, Orijin, Smirnoff Ice and Alvaro), with the rights instead licensed to Guinness Ghana under a new long-term agreement.
Diageo will also continue to drive the brand and marketing strategy for the Guinness brand in partnership with Castel.
Castel has a presence across western and central Africa, while it is a partner to Diageo in 11 other African markets.
Immediately following completion of this transaction, which is expected to take place within this calendar year, Guinness Ghana will remain listed on the Ghana Stock Exchange.
The news comes days after a report in Bloomberg which said that Diageo was considering selling the Guinness brand. However, the firm has since said that it has “no intention to sell” either Guinness or Moët Hennessy, which had also been rumoured.
‘Fantastic team’
Commenting on the news Dayalan Nayager, president of Diageo Africa and chief commercial officer, said: “Guinness Ghana is performing strongly powered by a fantastic team of people. Through this transaction, I look forward to the Guinness brand continuing to thrive and delivering further growth.
“I am excited to extend our partnership with Castel, a long-term partner in the region with a proven track record.”
Meanwhile, Castle chief executive Gregory Clerc explained that the deal will see the group to expand into a 22nd African country.
“This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition,” Clerc said.
“It reflects our ability to go where we are least expected, exploring new horizons on a continent full of opportunities. With this 22nd African country, we reaffirm our dynamism, our boldness, and our confidence in Africa’s potential.”
Diageo also sold its shareholding in Guinness Nigeria to Tolaram for £54m in September 2024, as well as its stake in Guinness Cameroon to Castel in July 2022.
