Kenya Approves Diageo’s $2.3B Stake Sale in East African Breweries to Asahi
Diageo, the global leader in spirits production and the creator of Johnnie Walker and Guinness, has secured a significant regulatory approval. The competition authority of Kenya has given the green light for its $2.3 billion sale of a 65% stake in East African Breweries (EABL) to Japan’s Asahi Group Holdings. This deal, first announced in December 2025, signifies Diageo’s last major divestment in African brewing and stands as the largest investment by a Japanese brewer in an African alcoholic beverages business.
EABL, with operations spanning Kenya, Uganda, and Tanzania and renowned for its iconic Tusker beer brand, is valued at approximately $4.8 billion under the deal terms — roughly 18.6x EBITDA. Despite the change in ownership, Diageo will maintain brand presence through long-term licensing agreements, enabling EABL to continue the production and distribution of Guinness, Smirnoff, and Captain Morgan.
The Competition Authority of Kenya approved the deal with conditions, mandating EABL to allocate sufficient funds to cover any outstanding liabilities and to reserve 20% of its cooler space in retail outlets for competitors’ beverages. The transaction is projected to be finalized by December 31, 2026. For Diageo, this sale propels its $500 million cost-cutting initiative and decreases the company’s leverage by approximately 0.25x in the face of ongoing US tariff pressures.
Source: CNBC Africa – Kenya approves Asahi Group acquisition of Diageo Kenya assets