Diageo Completes $2.3 Billion Sale of East African Breweries to Asahi
British drinks giant Diageo, owner of iconic brands including Johnnie Walker, Guinness, and Smirnoff, has completed the sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. The landmark deal is valued at $2.3 billion.
Kenya’s Competition Authority has formally approved the transaction, marking one of the largest investments by a Japanese brewing company in Africa’s alcoholic beverages sector to date.
The deal also includes Diageo’s 53.68% stake in Kenyan spirits company UDVK, giving Asahi control of EABL’s operations across:
- Kenya
- Uganda
- Tanzania
East Africa’s largest beer business, EABL produces popular local brands such as Tusker and Kenya Cane, which will remain with the company under Asahi’s ownership.
Diageo will retain a commercial presence in the region through long-term licensing agreements. These will allow EABL to continue producing and distributing global brands including Guinness, Smirnoff, and Captain Morgan.
Diageo plans to use the $2.3 billion in net proceeds to pay down debt, as part of its broader shift toward an asset-light model and efforts to strengthen its balance sheet. For Asahi, the acquisition marks its first major foothold in Africa’s fast-growing beer market.
Sources: CNBC Africa | Food Ingredients First