Diageo, the maker of Smirnoff vodka, Johnnie Walker whisky and Guinness stout, struck a deal in January 2013 to buy half of the company, which owns United National Breweries' traditional sorghum beer business in South Africa.

On Thursday it said it would pay an initial $22 million (15 million pounds) to Pestello Investments Inc for the remaining half. The deal includes a potential earn-out payment of up to $14 million and is conditional on consent from the South African competition authority.

(Reporting by Neil Maidment; editing by Martinne Geller)