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Business Reporter
GIANT beverages maker, Delta Corporation Limited, has entered into binding agreements to acquire United National Breweries Pty Ltd (UNB), a leading South African traditional beer company from current owners, Diageo South Africa Proprietary Limited.

In a statement through its media consultancy firm, Delta said the transaction was subject to customary regulatory approvals and would not disclose the financial figures involved.

“The company hopes to leverage on its over 60 years’ experience in the sorghum beer sector. This investment fits well with the company’s multi-beverage strategy and the ambition to consolidate the traditional beer category within the region, which was revived with the recent acquisition of a controlling stake in National Breweries Plc of Zambia,” said Delta.

“The transaction is expected to be completed in the first half of 2019 and is not material for Delta.”

UNB manufactures and distributes Traditional African (sorghum or opaque) beer in South Africa, with the products being marketed under the Chibuku, Leopard, Ijuba, Tlokwe and Joburg beer brands and the traditional non-alcoholic maize based energy drink under City Mageu.

Delta Corporation is involved, through its principal subsidiary Delta Beverages, in the brewing of lager and traditional beer and the bottling of soft drinks under licence from the Coca-Cola Company.

It operates one of the largest distribution network of depots and delivery fleets in Zimbabwe.

The company has a significant interest in Schweppes Zimbabwe, which manufactures still and juice drinks under the Coca- Cola franchise.

Delta Beverages is the country’s leading brewer with more than 15 beer brands and some 4 000-plus employees across the country.

The group’s portfolio includes Castle, Carling Black Label, Chibuku, Chibuku Super, Castle Lite, Redd’s and Castle Milk Stout as well as leading local brands such as Golden Pilsener and Zambezi.

Its associate entity, African Distillers, is the leading producer of wines, spirits and ciders. I

t is the majority shareholder in Natbrew Plc, the LSE listed traditional beer business in Zambia.

Delta Corporation is an associate of AB InBev, the world’s largest beer company.