Diageo’s $2.3B East African Breweries Sale to Asahi Nears Close

British spirits giant Diageo is in the final stretch of completing its landmark $2.3 billion sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. Completion is expected before the end of 2026. First announced in December 2025, the deal has cleared its most critical regulatory and legal hurdles and remains firmly on track.

The transaction values EABL at an implied enterprise value of $4.8 billion, equivalent to a 17× adjusted EBITDA multiple. It also includes Diageo’s 53.68% shareholding in Kenyan spirits producer UDVK.

The deal is the largest-ever investment by a major Japanese brewing company in an African alcoholic beverages business. It also marks Diageo’s strategic exit from African beer operations as part of CEO Dave Lewis’s broader restructuring plan, which targets $1 billion in savings over three years.

EABL, East Africa’s largest beer business, has operated across Kenya, Uganda, and Tanzania for a century. Under Asahi’s ownership, it will remain listed on the stock exchanges of all three countries.

Diageo will retain a regional brand presence through long-term licensing agreements covering iconic labels such as Guinness, Smirnoff, and Captain Morgan. Local brands, including Tusker and Kenya Cane, will remain with EABL.

The deal is expected to reduce Diageo’s leverage by approximately 0.25×, strengthening its balance sheet amid ongoing restructuring efforts and U.S. tariff pressures.

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