Diageo Sells East African Breweries Stake to Japan’s Asahi for $2.3 Billion

Global spirits giant Diageo, maker of Johnnie Walker, Guinness and Smirnoff, has finalized an agreement to sell its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for $2.3 billion. The deal marks a landmark transaction in Africa’s beverages sector.

The transaction values EABL at approximately $4.7–$4.8 billion, or about 17 times its adjusted EBITDA. It also includes Diageo’s remaining shares in Kenyan spirits business UDVK.

EABL is East Africa’s largest beer business, operating in Kenya, Uganda and Tanzania. Its locally owned brands include Tusker, Kenya Cane and Serengeti Lager, which will remain EABL assets after the sale.

The deal gives Asahi a significant presence in one of the world’s fastest-growing consumer markets and represents the Japanese brewing group’s first major investment in African alcoholic beverages. Under long-term licensing agreements, EABL will continue to manufacture and sell Diageo brands in the region, including Guinness, Smirnoff and Captain Morgan.

Kenya’s Competition Authority has approved the deal, which is expected to close by December 2026. EABL will remain listed on the Nairobi, Uganda and Tanzania stock exchanges after completion.

Source: The Grocer – Diageo Agrees to Sell EABL to Asahi for $2.3bn