Drinks group Diageo and Dutch brewer Heineken have agreed to form two new joint ventures in South Africa to combine their drinks businesses and also build a brewery.
Diageo, which owns Guinness Smirnoff vodka and Johnnie Walker whisky, and Heineken, famed for its lager, said they had teamed up with Namibia Breweries to form DHN Drinks.
This will combine their beer, cider and ready-to-drink businesses in South Africa and build on the three firms' current cost-sharing venture in the country.
Diageo and Heineken will each own 42.25% of DHN Drinks, and NBL will own 15.5%. Each party will share in the profits of DHN Drinks in proportion to their shareholding.
Diageo and Heineken said they had also agreed to form a second joint venture in South Africa to construct and operate a brewery in Gauteng province.
The brewery will be 75% owned by Heineken, with Diageo holding 25%.
