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UPDATE: Heineken buys Red Stripe from Diageo

Published:Wednesday | October 7, 2015 | 10:04 AM

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.