Drinks maker Diageo has made a bid for the Ethiopian state-owned brewery Meta Abo, according to a report in Kenya’s Business Daily newspaper.
The move could jeopardize East Africa Breweries Limited (EABL)’s plans to enter the Ethiopian market, the paper said. London, UK-based Diageo holds a 50.03 per cent stake in EABL.
Diageo is planning to expand its footprint throughout East Africa, and has so far used EABL as its vehicle in the region.
Diageo’s rivals Heineken and SABMiller are also said to have made bids to acquire Meta Abo.
With political stability, a population of around 85 million and a growing demand for beer, Ethiopia is an attractive prospect for the world’s drinks giants.
The Ethiopian government is currently selling its stakes in three breweries including Meta Abo, Harar and Bedele, which together have a market share of 38 per cent.
Diageo and SABMiller are currently battling it out for market dominance in East Africa, with stakes held in breweries in Uganda and Tanzania, and the establishment of new manufacturing plants in Sudan.
Meanwhile, Heineken has been building its presence in Africa with deals in Nigeria, Rwanda and South Africa being struck in recent months.
