SABMiller has claimed that a plan by Kenya's East African Breweries Limited to axe a deal with Tanzania Breweries Limited and take a stake in a competitor is a breach of contract.
The company holds a 52.83% stake in Tanzania Breweries Limited (TBL) with East African Breweries owning 20%.
The latter announced on Saturday that it intended to scrap a pact with TBL and instead take a stake in Serengeti Breweries Limited, the second largest brewer in Tanzania.
SABMIller accused East African Breweries of breaching a contract.
"TBL considers that EABL's actions represent a fundamental breach of their undertakings to TBL and SABMiller, having negotiated a competitive deal while remaining as a shareholder of TBL and a member of TBL's board," a spokesperson for SABMiller said.
The company is now seeking a court injunction and will take further legal action if the dispute is not settled amicably.