Diageo and SABMiller settle dispute

25th Feb 2010 07:54

Drinks brands giant Daigeo has kissed and made up with brewing colossus SABMiller in their dispute over Diageo's move to acquire a stake in Tanzania's Serengeti Breweries.Under the terms of the agreement SABMiller subsidiary Tanzania Breweries Limited (TBL) will quit brewing and distributing beers in Tanzania licensed from Diageo subsidiary East African Breweries Limited (EABL) after a transitional period.The beer brands of TBL and another SABMiller subsidiary, SABMiller International BV, will continue to be brewed and distributed in Kenya.The dispute flared up when Kenya's EABL moved to acquire a stake in Tanzania's Serengeti Breweries, an action that SABMiller claimed was in breach of an agreement between it and Diageo dating back to 2002.Serengeti Breweries is Tanzania's second largest brewery after TBL.As a result of the settlement the lawyers have been sent home and all claims and counterclaims in the arbitration in London will be withdrawn.