British multinational alcoholic beverages company Diageo has entered an agreement with Delta Corporation to sell its sorghum beer business, United National Breweries (UNB), in South Africa.

Financial details of the deal have not been disclosed by both the companies.

Headquartered in Midrand, South Africa, UNB produces and offers a wide range of beers, including Chibuku, Tlokwe, and Joburg.

Its other beer brands include zebra beer, shake shake, country brew and Kalahari sorghum.

Completion of the deal is subject to regulatory approval and is expected to close in the second half of next year.

In January 2013, Diageo entered an agreement to acquire a 50% stake in the company that owns UNB. The remaining stake was held by Pestello Investments, a company affiliated to Indian businessman Dr Vijay Mallya.

“Diageo made an initial payment of $22m and a potential earn-out payment of up to $14m.”

The British alcoholic beverages company acquired the remaining stake in the company from Pestello Investments, to include UNB as its wholly owned subsidiary.

For this acquisition, Diageo made an initial payment of $22m and a potential earn-out payment of up to $14m.

Last month, Diageo agreed to sell 19 brands to US-based distiller Sazerac for an aggregate consideration of $550m.

The brands that were part of the deal included Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Parrot Bay, Romana Sambuca and Popov, as well as Yukon Jack, Goldschlager, Stirrings, and The Club.