Heineken has terminated SABMiller's licence to manufacture and distribute Amstel lager in South Africa with immediate effect.

Heineken started proceedings to end the contract after SABMiller acquired Columbian brewery Bavaria in 2005.

In a statement, SABMiller said it was already pursuing a number of initiatives to mitigate the impact of the licence termination but warned that profit in the current financial year and next would be $80m (£41.5m) lower.