Diageo Completes $2.3B Sale of East African Breweries Stake to Asahi

In a landmark cross-continental deal, British spirits giant Diageo has completed the sale of its 65% controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for US$2.3 billion. It is the largest-ever investment by a Japanese brewing company in an African alcoholic beverages business.

Kenya’s Competition Authority has formally approved the transaction, clearing the final major regulatory hurdle. The deal values EABL at an enterprise value of approximately $4.7–4.8 billion, representing a 17× multiple of EABL’s adjusted EBITDA.

Under the agreement, Asahi gains control of EABL’s operations across Kenya, Uganda, and Tanzania, along with iconic local brands including Tusker, Kenya Cane, and Serengeti Lager.

Diageo will retain long-term licensing agreements that allow EABL to continue manufacturing and distributing Diageo’s global portfolio—including Guinness, Smirnoff, and Captain Morgan—under royalty arrangements. EABL is expected to remain listed on the Kenya, Uganda, and Tanzania stock exchanges following the transaction’s close.

Diageo interim CEO Nik Jhangiani described the deal as part of the company’s strategic shift toward an “asset-light” beer model in Africa, freeing up capital to focus on its core premium spirits brands worldwide. For Asahi, the acquisition marks a significant push into Africa’s high-growth consumer market.

Source: The Grocer – Diageo agrees to sell EABL shareholding to Asahi for $2.3bn