Diageo Secures Approval for $2.3B East African Breweries Stake Sale to Asahi

British spirits giant Diageo has finalized the sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for approximately $2.3 billion. The deal marks the largest investment by a major Japanese brewing company in an African alcoholic beverages business.

First announced in December 2025, the transaction has received regulatory clearance from Kenya’s Competition Authority, with completion expected by the end of 2026.

EABL is East Africa’s largest beer business, operating across Kenya, Uganda, and Tanzania. Its portfolio includes iconic regional brands such as Tusker, Kenya Cane, and Serengeti Lager. The transaction implies an enterprise value of approximately $4.7–$4.8 billion, or about 17 times EABL’s adjusted EBITDA.

Under long-term licensing agreements included in the deal, EABL will continue to manufacture, distribute, and sell several Diageo global brands, including Guinness, Smirnoff, and Captain Morgan.

The divestiture supports Diageo’s strategy to pursue an “asset-light” model in African beer operations and reduce its overall debt. Asahi has pledged to keep EABL listed on the Nairobi, Uganda, and Tanzania stock exchanges after the transaction is completed.

Kenya’s Competition Authority attached conditions to its approval, requiring EABL to:

• Reserve 20% of its cooler space in retail outlets for competitors’ products.
• Set aside sufficient funds to meet outstanding liabilities.

Source: Nation Africa – Competition Authority Approves Diageo’s EABL Stake Sale to Asahi