Diageo Sells East African Breweries to Japan’s Asahi for $2.3 Billion
British spirits giant Diageo, maker of Johnnie Walker and Guinness, has finalized a landmark deal to sell its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for $2.3 billion.
Kenya’s Competition Authority has cleared the transaction, moving it a step closer to completion. The deal is expected to close by the end of 2026, pending further regulatory approvals.
The transaction values EABL—the largest beer business in East Africa—at approximately $4.7–$4.8 billion. The company operates in Kenya, Uganda, and Tanzania and owns popular regional brands including Tusker, Kenya Cane, and Serengeti Lager, which will remain with EABL under Asahi’s ownership.
Diageo will retain long-term licensing agreements, allowing EABL to continue producing and distributing Guinness, Smirnoff, and Captain Morgan in the region.
For Asahi, the acquisition marks its first major investment in African alcoholic beverages and its largest-ever deal on the continent. Diageo’s sale aligns with its broader strategy to adopt an asset-light model in African beer markets and reduce corporate debt.
As a condition of approval, Kenya’s Competition Authority has required EABL to reserve 20% of its cooler space in retail outlets for competitors’ products.
Source: CNBC Africa – Kenya approves Asahi Group acquisition of Diageo Kenya assets