Diageo Completes $2.3B Sale of East African Breweries to Asahi

British drinks giant Diageo has finalized the sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings in a landmark deal valued at $2.3 billion. The transaction completes Diageo’s strategic exit from African brewing operations.

Originally announced in December 2025, the transaction values EABL at approximately $4.8 billion, or 17 times adjusted EBITDA. It also includes Diageo’s 53.68% shareholding in Kenyan spirits producer UDV Kenya Limited.

For Asahi, the deal marks its first major investment in African alcoholic beverages and gives the Japanese brewer control of EABL’s operations across Kenya, Uganda, and Tanzania. EABL is East Africa’s largest beer business and produces iconic brands such as Tusker.

The sale supports Diageo’s broader $500 million cost-cutting program and is expected to reduce its leverage ratio by approximately 0.25x. Under long-term licensing agreements included in the transaction, EABL will continue to manufacture and distribute Diageo’s global brands—including Guinness, Smirnoff, and Captain Morgan—in the region.

Kenya’s Competition Authority approved the transaction subject to conditions, including a requirement for EABL to reserve 20% of its retail cooler space for competitors’ products.

Source: Food Ingredients First – Diageo completes East African Breweries sale to Asahi for US$2.3B