British drinks giant Diageo — maker of Johnnie Walker, Guinness, and Smirnoff — has cleared a critical milestone in its $2.3 billion sale of East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings, after Kenya’s Competition Authority (CAK) formally approved the deal in September 2026. The transaction, first announced in December 2025, is now on track to close by December 31, 2026, pending final regulatory steps.
The deal sees Diageo divest its 65% controlling stake in EABL — East Africa’s largest beer business, operating across Kenya, Uganda, and Tanzania — at a valuation of approximately $4.8 billion, or 18.6 times EBITDA. For Asahi, it marks the largest-ever investment by a Japanese brewer in an African alcohol business. EABL, which reported net sales of $996 million in FY2025, owns beloved brands including Tusker beer and Kenya Cane spirits, which will remain with EABL under the new ownership.
The sale is a cornerstone of Diageo’s aggressive deleveraging strategy, supporting its $500 million cost-cutting program amid tariff pressures in key markets. Despite the ownership transfer, Diageo will maintain brand presence in the region through long-term licensing agreements covering Guinness, Smirnoff, and Captain Morgan. Kenya’s competition regulator approved the deal on the condition that EABL reserves sufficient funds to cover any outstanding liabilities and sets aside 20% of retail cooler space for competitors. EABL will remain listed on the Nairobi Stock Exchange with Asahi as its majority shareholder.
Source: The Drinks Business – Diageo’s EABL Sale Clears Key Regulatory Hurdle