UK: SABMiller blocks Diageo Tanzania deal, for now
A High Court judge in London today (18 August) granted the injunction, which blocks East African Breweries Ltd (EABL) from breaking its partnership with SABMiller-controlled Tanzania Breweries and investing in a rival brewer in the country.
The injunction will remain in place pending arbitration proceedings at the International Chamber of Commerce (ICC).
Neither firm was able to confirm a timetable for the ICC hearing, although the injunction will expire on 17 January 2011.
Kenya-based EABL owns a 20% stake in Tanzania Breweries, which is Tanzania's largest brewer and is 52.83% owned by SABMiller.
However, SABMiller accused EABL of breaching its contract after Diageo announced that the brewer had signed a deal to acquire a "substantial interest" in Serengeti Breweries, Tanzania's second largest brewer, for an undisclosed fee.
A spokesperson for Diageo told just-drinks today that the group "have made clear that our future [in Tanzania] is with Serengeti".
Ireland's dilapidated economy looks to have forced Diageo to shelve plans for a full-scale overhaul of brewing operations for at least 12 months....
Japanese drinks group Kirin Holdings has appointed a new president and CEO as it looks to push on with plans to drive earnings, despite a breakdown in merger talks with Suntory....
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