At a Glance
- Diageo sells the entire East Africa beer business to Asahi for about $2.3 billion.
- Deal ends Diageo’s century-long Kenya presence, hands control of EABL to Asahi.
- Asahi targets East Africa growth; Diageo refocuses on priority markets and premium spirits.
Diageo Plc UK, a global brewing giant, has agreed to sell its entire stake in East African Breweries Ltd. (EABL), marking a full exit from East Africa’s beer market in a transaction valued at about $2.3 billion.
The deal will see Japan’s Asahi Group Holdings Ltd. acquire Diageo’s interests, delivering roughly KSh 296.6 billion ($2.3 billion) in proceeds to the London-based beverage giant and reshaping one of Africa’s most established alcohol markets.
Under the agreement, Diageo is disposing of its 65% shareholding in EABL through its indirect subsidiary Diageo Kenya Ltd., alongside its 53.68% stake in spirits maker UDV (Kenya) Ltd. The sale hands control of Kenya’s largest brewer to Asahi, one of the world’s top 10 beer producers and a major force in the Asian alcohol and beverages industry.
Regulatory path opens for Asahi takeover
The transaction brings to a close Diageo’s more than 100-year presence in Kenya’s beer business, a legacy closely tied to flagship brands such as Tusker and Guinness in the East African market.
For Asahi, the acquisition strengthens its global expansion strategy by securing a leading position in Kenya, Uganda and Tanzania, regions with some of Africa’s fastest-growing consumer markets.
EABL, which has 35% of its shares held by public investors, disclosed that Diageo has informed its board of the imminent sale, subject to regulatory approvals. Asahi plans to seek exemptions from mandatory takeover offer requirements from capital markets regulators in Kenya, Uganda and Tanzania, according to company statements.
Diageo refocuses as Asahi targets African growth
Following the announcement, trading in EABL shares was temporarily suspended at the Nairobi Securities Exchange (NSE) on December 17, 2025, after the release of market-sensitive information during trading hours. The NSE said the halt was aimed at ensuring orderly trading and equal access to information. Trading is expected to resume on December 18, 2025.
The deal, which also includes Diageo’s majority stake in UDV Kenya, is expected to close in the second half of 2026, pending regulatory clearances. Analysts say the exit allows Diageo to sharpen its focus on priority markets and premium spirits, while Asahi gains scale and geographic diversification in Africa’s alcohol sector.
Diageo, founded in 1997, a FTSE 100-listed multinational, owns a portfolio of more than 200 global brands, including Johnnie Walker, Guinness, Smirnoff, Captain Morgan and Tanqueray, with sales in nearly 180 countries.
Asahi, meanwhile, continues to build its international footprint beyond Asia, positioning East Africa as a key growth frontier in global beer and spirits consumption.
