Heineken NV has bought Jamaica’s Red Stripe beer from Diageo Plc reportedly for US$421 million.
It will bring Heineken’s stake in Desnoes & Geddes Limited, the operating company for Red Stripe, to just over 73 per cent. Diageo held a 57.9 per cent stake.
Under Jamaica’s stock market rules, it means that Heineken will have to make a buy-out offer for all other D&G shares.
The deal with Heineken prices D&G/Red Stripe at just under US$727 million or more than J$86 billion – which is four times its current value on the Jamaica Stock Exchange.
Heineken is also buying other Diageo assets under deals worth US$781 million, including Red Stripe.