Diageo divests majority stake in Guinness Ghana to Castel Group for US$81M
GHANA – Diageo has announced the sale of its 80.4% shareholding in Guinness Ghana Breweries to French beverage company Castel Group for US$81 million.
In a statement confirming the deal, the UK-based drinks giant noted that Diageo brands currently produced by the Ghanaian business—including Guinness—will be licensed to Castel under a new agreement.
Other popular Diageo brands such as Malta Guinness, Orijin, Smirnoff Ice, Alvaro, and mainstream spirits will continue to be produced and distributed by Guinness Ghana under the new licensing arrangement.
This deal follows Diageo’s divestment of its Guinness brewing operation in Cameroon to Castel in 2022 and its sale of shares in Guinness Nigeria to Singapore-based consumer group Tolaram in 2023.
The latest transaction aligns with Diageo’s strategy of restructuring its operations in West Africa to enhance long-term growth and efficiency.
Commenting on the sale, Dayalan Nayager, CEO of Diageo’s Africa operations, emphasized the strong performance of Guinness Ghana and expressed confidence in the brand’s future under the new ownership.
“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,” Nayager said.
Gregory Clerc, CEO of Castel Group, highlighted the strategic importance of the acquisition, which expands Castel’s presence in Africa to 22 markets.
“We reaffirm our dynamism, our boldness, and our confidence in Africa’s potential. This acquisition exemplifies the entrepreneurial spirit that drives Castel and marks a new milestone in our growth ambition,” Clerc stated.
The transaction remains subject to regulatory approvals and is expected to be completed within the calendar year. Guinness Ghana will remain listed on the Ghanaian Stock Exchange.
In the financial year ending June, Guinness Ghana Breweries recorded a revenue increase from 1.77 billion cedis to 2.37 billion cedis (US$16 million).
However, its operating profit declined from 128.2 million cedis (US$8.4M) to 101.2 million cedis (US$6.64M), with net profit falling to 34.8 million cedis (US$2.29M) from 39.5 million cedis (US$2.6M) the previous year.
Castel Group operates across West and Central Africa and collaborates with Diageo in 11 other African markets.
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