Heineken, Diageo agree drinks JV in South Africa

LONDON (Reuters) - Drinks groups Diageo (DGE.L), Heineken (HEIN.AS) and Namibia Breweries Ltd (NBL) said on Friday they had agreed to form a new joint venture in South Africa.

The three firms said the venture, to be called DHN Drinks, was for their combined beer, cider and ready-to-drink (RTD) businesses in South Africa and would build on their current cost-sharing venture in the country.

British drinks group Diageo and Dutch brewer Heineken will each own 42.25 percent of DHN Drinks and NBL will own 15.5 percent. Each party will share in the profits of DHN Drinks in proportion to their shareholding.

(Reporting by Mark Potter, Editing by Dan Lalor)