Diageo plc Updates on Agreement to Form a 50:50 Joint Venture in Respect of United National Breweries' Traditional Sorghum Beer Business in South Africa

Diageo plc announced that it entered into a memorandum of understanding on November 9, 2012 with Dr Mallya under which they would form a 50:50 joint venture, which would own United National Breweries' traditional sorghum beer business in South Africa. Further to this announcement, Diageo plc announced that it has entered into an agreement to acquire a 50% interest in the company which owns United National Breweries' traditional sorghum beer business in South Africa. The remaining 50% will be held by a company affiliated to Dr Mallya. Diageo plc will acquire its 50% interest for USD 36 million (approximately GBP 23 million), subject to customary adjustments. The transaction is conditional on (among other things) consent from the South African competition authority and is expected to complete in the first half of this year.