Diageo Secures Regulatory Approval for $2.3B East African Breweries Sale to Asahi
British spirits giant Diageo has received a key regulatory green light for the $2.3 billion sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. Kenya’s Competition Authority approved the transaction, clearing a major hurdle for the deal first announced in December 2025.
The deal values EABL at approximately $4.8 billion and gives Asahi control of East Africa’s largest beer business, which was established more than a century ago and operates across Kenya, Uganda, and Tanzania. For Asahi, the acquisition represents the largest-ever investment by a major Japanese brewing group in African alcoholic beverages. Local brands such as Tusker and Kenya Cane will remain EABL-owned assets.
Under long-term licensing agreements included in the deal, EABL will continue to manufacture and distribute Diageo’s global brands, including Guinness, Smirnoff, and Captain Morgan.
The Competition Authority of Kenya imposed conditions requiring EABL to:
- Reserve sufficient funds to cover outstanding liabilities.
- Allocate 20% of its retail cooler space to competitors’ drinks.
The transaction is expected to be fully completed by December 31, 2026, subject to remaining regulatory approvals.
Source: Food Ingredients First – Diageo Completes East African Breweries Sale to Asahi