Kenya-based East African Breweries Limited (EABL) has announced plans to increase its ownership in Serengeti Breweries Limited (SBL) based in Tanzania to 85% from 55%.
In a statement, the company said “EABL intends to enter into a conditional transaction to purchase an additional 30% shareholding in Serengeti Breweries. Completion of the transaction is subject to various regulatory approvals in Kenya and Tanzania.”
While the purchase amount was not disclosed, EABL paid 313 million Kenyan Shillings (approximately $3 million) last year to increase its stake in Serengeti Breweries by 4%.
SBL is Tanzania’s second-largest brewer and holds 15% of the beer market. EABL also markets its brands in Tanzania and when combined with SBL’s 15% market share, it’s share rises to 28%.
AB InBev-owned Tanzania Breweries is the market leader. In March 2018, it announced the construction of a new $100m brewery in the country’s capital, Dodoma, Tanzania.
Serengeti has three breweries in Tanzania. The Dar es Salaam plant has a production capacity of 350,000 hl; a second brewery in Mwanza has a capacity of 650,000 hl while the state-of-the-art brewery in Moshi which was commissioned in January 2012 has a production capacity of 500,000 hl expandable to 800,000 hl.
EABL is a subsidiary of British-based Diageo Plc.