Diageo’s $2.3B EABL Sale to Asahi Clears Key Regulatory Hurdle

A landmark $2.3 billion deal between UK spirits giant Diageo and Japan’s Asahi Group Holdings has cleared a key regulatory hurdle. Kenya’s Competition Authority has formally approved the sale of Diageo’s 65% controlling stake in East African Breweries PLC (EABL).

Announced in December 2025, the transaction is expected to close by the end of 2026.

The deal values EABL—one of East Africa’s largest companies by market capitalisation and the region’s largest brewer—at approximately $4.8 billion, or about 18.6 times EBITDA. For Asahi, the acquisition represents the largest investment by a major Japanese brewing company in African alcoholic beverages, extending its operations into Kenya, Uganda and Tanzania.

Under the agreement, EABL will retain ownership of popular local brands, including Tusker, Kenya Cane and Serengeti Lager. The company will also continue to manufacture and distribute Diageo’s global brands, including Guinness, Smirnoff and Captain Morgan, under long-term licensing agreements.

EABL will remain publicly listed on the Nairobi, Uganda and Tanzania stock exchanges after the transaction closes. The sale supports Diageo’s broader strategy to adopt an asset-light model in beer across Africa and accelerate deleveraging.

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