Diageo Closes $2.3B East African Breweries Sale to Japan’s Asahi

British spirits giant Diageo has completed the landmark sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for $2.3 billion. The deal marks the largest investment by a Japanese brewing company in African alcoholic beverages to date. Kenya’s Competition Authority has approved the transaction, clearing its final regulatory hurdle.

The deal values EABL at an enterprise value of approximately $4.7–$4.8 billion, representing a 17x multiple of the company’s adjusted EBITDA. East Africa’s largest beer business operates across Kenya, Uganda, and Tanzania. Its iconic local brands, including Tusker and Kenya Cane, will remain EABL-owned assets after the transaction.

Under long-term licensing agreements, EABL will continue to manufacture and distribute Diageo’s global brands in the region, including Guinness, Smirnoff, and Captain Morgan. Diageo interim CEO Nik Jhangiani called the deal a proud milestone and emphasized the company’s future collaboration with Asahi.

For Asahi, the acquisition marks a transformative entry into Africa’s rapidly growing beer market. EABL is expected to remain listed on the Kenya, Uganda, and Tanzania stock exchanges following completion of the transaction.

Source: CNBC Africa — Kenya Approves Asahi Group Acquisition of Diageo Kenya Assets