Diageo has declined to comment on reports that its East African Breweries unit is close to selling a stake in SABMiller subsidiary Tanzania Breweries.

Local media reports said at the weekend that East African Breweries (EABL) was progressing with a plan to sell a 10% stake in Tanzania Breweries. Tanzania's competition watchdog has said that EABL must sell the stake to the public at only a third of the market rate, according to reports.

Diageo declined to comment on the matter when contacted by just-drinks today (13 October).

EABL has already committed itself to disposing of its full 20% holding in Tanzania Breweries, which is controlled by SABMiller. The Diageo subsidiary intends to acquire control of Tanzania Breweries' rival, Serengeti Breweries.

In August, Diageo confirmed that EABL had received regulatory clearance for the move, although it did not comment on the details of conditions laid down by competition officials.