Diageo has handed over control of Red Stripe lager to Heineken by selling its stake in the Jamaican brand owner Desnoes & Geddes.
Heineken is adding Diageo's 57.9% shareholding in D&G to its own existing stake to bring its interest up to 73.3%.
Diageo's international distribution rights for the Red Stripe brand will transfer to Heineken as part of the deal on January 1, 2016.
The sale is part of a package which also sees Heineken buy Diageo out of the two company's joint venture in Malaysia, and Diageo take a 20% stake in Guinness Ghana Breweries from Heineken.
The package nets Diageo £515 million.
Diageo is rumoured to be in talks to sell off its wine interests to Australia's Treasury Wine Estates as it seeks to divest itself of non-core assets.
Chief executive Ivan Menezes said: "The transaction we have announced today continues our proactive approach to our portfolio, enhancing our focus on the core to achieve Diageo's performance ambition."
Jean-François van Boxmeer, Heineken's chief executive officer, said: "Having greater commercial control in the important regions of south east Asia and the Caribbean will allow us to maximise the strong potential of our brands in these growth markets."