Diageo Sells East African Breweries to Asahi for $2.3 Billion

British spirits giant Diageo—maker of Johnnie Walker, Guinness, and Smirnoff—has completed a landmark deal to sell its controlling 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for $2.3 billion. The sale marks Diageo’s final major exit from African brewing operations.

The transaction values EABL at approximately $4.8 billion and gives Asahi control of East Africa’s largest beer business, with operations in Kenya, Uganda, and Tanzania. Founded over a century ago, EABL is home to regional brands including Tusker, Kenya Cane, and Serengeti Lager. These brands will remain under EABL ownership after the acquisition.

For Asahi, the deal is its first major investment in African alcoholic beverages and the largest investment in the continent to date by a major Japanese brewing group. Asahi says it plans to preserve EABL’s strong local brand portfolio while selectively introducing globally recognized brands from its own lineup to East African consumers.

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

Kenya’s Competition Authority has approved the transaction, subject to conditions. These include requiring EABL to:

• Reserve sufficient funds to cover outstanding liabilities.
• Dedicate 20% of retail cooler space to competitors.

The deal is expected to close by the end of 2026. EABL will remain listed on the Nairobi, Uganda, and Tanzania stock exchanges after completion.

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