Kenya Approves Diageo’s $2.3B East African Breweries Sale to Asahi

British drinks giant Diageo, maker of Johnnie Walker and Guinness, has cleared a key milestone in the sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. Kenya’s competition regulator has formally approved the landmark transaction.

Announced in December 2025, the deal values EABL at approximately $4.8 billion, or about 18.6 times its EBITDA. It marks the largest-ever investment by a Japanese brewer in an African alcohol business.

Diageo’s disposal also includes its 53.68% shareholding in Kenyan spirits company UDV Kenya (UDVK), bringing the combined transaction value to approximately $3 billion. The sale is part of Diageo’s broader strategy to exit direct African beer operations and move toward an asset-light model on the continent.

• EABL brands: Tusker, Kenya Cane and Serengeti Lager will remain owned by EABL.
• Diageo brands: EABL will retain new licensing agreements to produce and distribute brands such as Guinness.
• Stock exchange listings: EABL will remain listed in Kenya, Uganda and Tanzania after the transaction closes.
• Regulatory condition: EABL must reserve 20% of its cooler space in retail outlets for competitors’ drinks.

The deal is expected to be completed before the end of 2026, subject to the remaining regulatory approvals.

Source: CNBC Africa – Kenya approves Asahi Group acquisition of Diageo Kenya assets