Diageo subsidiary East African Breweries has swooped to buy Tanzanian rival Serengeti Breweries.

The $60.4m (£38.1) deal sees East African take a 51% stake in its rival, whose flagship brand is Serengeti Lager.

East African said the tie-up would also boost its distribution in Kenya and Uganda.

The news comes after Diageo was linked with a £10.6bn move for Moët Hennessy, the drinks arm of luxury goods group LVMH.

Moët Hennessy controls Champagne brands such as Dom Perignon, Krug and Moët & Chandon (pictured), as well as Hennessy cognac.

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