Diageo (DEO) has appointed Bank of America (BAC) and Goldman Sachs (GS) to conduct a strategic review of its holding in East African Breweries, Bloomberg News reported Monday, citing people familiar with the matter.
Options under consideration may include the sale of East African Breweries' beer business alone, potentially valued at around $2 billion in a deal, the unnamed sources told the news outlet.
East African Breweries has a roughly $1.2 billion market value, with Diageo holding a 65% majority stake, according to the report.
Other major brewers such as Anheuser-Busch InBev (BUD) could be interested in a potential transaction for the business, Bloomberg reported.
Diageo, Bank of America, Goldman and Anheuser-Busch didn't immediately respond to MT Newswires' requests for comment.
Diageo shares were down 1.3% in recent premarket activity.
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