Diageo Completes $2.3B Sale of East African Breweries to Japan’s Asahi
Global spirits giant Diageo (LON: DGE) has finalized the sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings in a landmark $2.3 billion deal. The transaction marks Diageo’s strategic exit from direct African beer operations and Asahi’s largest-ever investment in Africa’s alcoholic beverages sector.
The deal values EABL at approximately $4.7–4.8 billion, or about 17 times its adjusted EBITDA, and includes Diageo’s stake in Kenyan spirits business UDVK.
East Africa’s largest beer business, EABL operates across Kenya, Uganda, and Tanzania. Its portfolio includes iconic local brands such as Tusker and Kenya Cane, which will remain with EABL after the transaction.
Under the agreement, Diageo will enter into long-term licensing arrangements allowing EABL to continue manufacturing and distributing major global brands, including Guinness, Smirnoff, and Captain Morgan. EABL is expected to remain listed on the Nairobi, Uganda, and Tanzania stock exchanges following completion.
Diageo interim CEO Nik Jhangiani said the company is proud of EABL’s achievements and is pursuing an asset-light beer model in Africa. For Asahi, the acquisition represents a major strategic push into emerging growth markets across the continent.
Kenya’s Competition Authority has already granted regulatory approval. The full transaction is expected to close by December 31, 2026.
Source: The Grocer – Diageo Agrees to Sell EABL Shareholding to Asahi for $2.3bn