SAB is expected to list in London in March 1999, coinciding with the listing of Anglo American, the world's biggest mining conglomerate and South Africa's largest company.

SAB managing director Graham Mackay said: "The new structure will allow us to build on our international beverage operations and accelerate international expansion, while continuing to invest in and strengthen our existing operations in South Africa."

Increasing its competition

SAB, which makes Dreher, Lech and Castle lager among others, said a London listing would increase its competitiveness with international brewers, although it will still be listed on the Johannesburg Stock Exchange.

SAB said it planned to sell off some of its non-core businesses, including clothing retailer Edgars and shoe firm Conshu, in light of the decision.

SAB said it wanted to concentrate on its beer, hotels and gambling divisions.

Since 1995, SAB has invested £660m in the domestic brewing market and a further $825m offshore.

SAB is South Africa's oldest company and has been listed in Johannesburg since 1897. It has a 98% share of the brewery market in South Africa.

It sells 18m hectolitres internationally, but its principal stakes in breweries are in sub-Saharan Africa, central Europe and China.