Diageo Plc has agreed to sell its 80.4% stake in Guinness Ghana Breweries Ltd. to Castel Group.
The deal was priced at 5.15 cedis per share and put Guinness Ghana’s value at $104 million, according to a statement released on the Ghana Stock Exchange.
The deal has now positioned Castel Group for an expanded footprint in West Africa.
The West African nation has shown signs of economic recovery with GDP growth averaging 6.3% in the first nine months of 2024.
Confirming the deal, Gregory Clerc, Castel’s Chief Executive Officer, described the move as a strategic milestone in the group’s African expansion plans.
“This acquisition marks a new milestone in our growth ambition. It reflects our ability to go where we are least expected, exploring new horizons on a continent full of opportunities,” Clerc said in a statement.
As part of the agreement, Castel will enter into a licensing and royalty arrangement with Diageo to allow it to brew, produce and distribute Guinness and other Diageo brands in Ghana.
Despite the change in ownership, Guinness Ghana will remain listed on the Ghana Stock Exchange.
The deal is Castel’s entry into its 22nd market in Africa and reinforcing its dominant position in the continent’s beverage industry.
The company has been expanding aggressively across Francophone and Anglophone Africa.
The sale follows Diageo’s broader portfolio restructuring strategy, which saw it agree to offload its Nigerian subsidiary, Guinness Nigeria Plc, to Singapore-based Tolaram in June.
With Ghana’s booming beverage sector and economic rebound, industry analysts view Castel’s acquisition of Guinness Ghana as a strategic bet on long-term growth and market dominance in West Africa.