British spirits giant Diageo (LSE: DGE) is in the final stages of completing its landmark $2.3 billion sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings, with the deal expected to close before December 31, 2026 following regulatory clearance from Kenya’s competition authority in September.
The transaction, which values EABL at an implied enterprise value of $4.8 billion (a 17x adjusted EBITDA multiple), marks the largest-ever investment by a Japanese brewing group in an African alcoholic beverages company. EABL operates across Kenya, Uganda, and Tanzania — the largest beer business in East Africa — and its products are sold in more than 10 African countries.
Despite the ownership transfer, Diageo will retain its brand presence in the region through long-term licensing agreements. EABL will continue producing and distributing Guinness, Smirnoff, Captain Morgan, and other Diageo brands under licence. The deal supports Diageo’s broader strategy of divesting non-core assets to cut debt, reduce leverage by approximately 0.25x, and fund a $500 million cost-cutting program amid ongoing global tariff pressures.
Source: Food Ingredients First – Diageo Completes EABL Sale to Asahi | The Drinks Business – EABL Sale Clears Regulatory Hurdle