Tanzania has granted conditional approval of East African Breweries Ltd.’s acquisition of 51% of Serengeti Breweries Ltd., Tanzania’s second-biggest beer maker.

East African Breweries (EABL), must sell its 20% stake in rival Tanzania Breweries Ltd. before the purchase is completed, the Fair Competition Commission said in a faxed statement.  

Diageo owns 43% of EABL, which is Kenya’s second- biggest company by market value, according to Bloomberg data. EABL is targeting an initial market share of 30% upon buying the Tanzanian business.

EABL must also continue to promote Seregenti’s corporate identity for five years after the effective date of the merger and not close any of Seregenti’s existing plants without prior approval from the commission.