Diageo is seeking judicial intervention to accelerate hearings surrounding its planned $2.3 billion sale of its controlling stake in East African Breweries PLC to Japan’s Asahi Group Holdings, as legal challenges threaten to delay one of Africa’s largest consumer sector transactions.

The British beverage giant has written to Kenya’s Chief Justice, Martha Koome, urging the judiciary to consolidate several court cases linked to the deal amid concerns over conflicting rulings and prolonged uncertainty.

The transaction, first announced in December 2025, involves Asahi acquiring 100% of Diageo Kenya Limited from Diageo Holdings Netherlands B.V., effectively transferring Diageo’s 65% ownership in East African Breweries PLC to the Japanese brewer.

Minority shareholder challenge stalls transaction

The latest challenge emerged after a minority shareholder secured a court order temporarily halting the acquisition, marking the fourth legal attempt to block the transaction.

Lawyers representing EABL argued that the growing number of parallel proceedings risks creating contradictory judgments and undermining investor confidence in Kenya’s capital markets.

The company also raised concerns over alleged forum shopping, claiming that cases were being filed in alternative courts after earlier applications failed in Nairobi.

Regulatory approvals strengthen Asahi’s position

Despite the legal hurdles, Asahi has continued to secure key regulatory milestones across East Africa.

In May 2026, capital markets regulators in Kenya, Uganda and Tanzania granted the Japanese company exemptions from mandatory takeover offers to minority shareholders, removing one of the largest regulatory obstacles facing the acquisition.

The approvals significantly improve the prospects for completing the transaction during the second half of 2026, as originally projected by both parties. The sale represents a major strategic realignment in Africa’s fast-growing beverage market.

Strategic shift in Africa’s beverage industry

Founded in 1889, Asahi has grown into one of the world’s largest beverage producers, generating annual revenue exceeding JPY2.9 trillion and selling more than 10 billion litres of drinks globally.

For East African Breweries, established in Nairobi in 1922, the deal could unlock fresh investment opportunities and strengthen regional expansion plans across Kenya, Uganda and Tanzania.

Diageo, formed in 1997 through the merger of Guinness and Grand Metropolitan, remains one of the world’s largest beverage groups, operating more than 130 production facilities and distributing over 200 brands across 180 countries.

The company said it remains confident in the merits of the transaction and will continue taking the necessary steps to protect its position while respecting Kenya’s judicial process.