Kenya’s competition authority has approved Japan’s Asahi Group Holdings Limited acquisition of Diageo Plc’s controlling stake in East African Breweries Limited (EABL), clearing a key regulatory hurdle for the $2.3 billion deal.

The Competition Authority of Kenya said Friday that it had approved the transaction involving Diageo Kenya Limited. and UDV Kenya Limited, subject to conditions aimed at protecting competing beverage brands and smaller businesses.

Under the approval, EABL will have to ensure that at least 20 percent of refrigeration space provided to retail outlets is reserved for products that are not branded by EABL or Asahi.

The authority also required EABL to set aside sufficient funds from the transaction to settle any outstanding liabilities. The conditions are designed to protect the supply of goods and services and ensure small businesses can continue to operate and grow, it said.

Kenya approves Asahi’s $2.3 billion EABL deal

Diageo, the London-listed drinks maker, agreed in December 2025 to sell its 65 percent stake in EABL to Asahi for $2.3 billion. The transaction is part of Diageo’s plan to sell its African beer interests and focus its business elsewhere.

The deal has faced legal challenges in Kenya. Distributor Bia Tosha filed a lawsuit against the transaction, but the case was dismissed in April. EABL subsequently asked Kenya’s chief justice in June to expedite hearings in related proceedings.

The competition authority’s approval removes one of the main regulatory obstacles to Asahi taking control of Diageo’s Kenyan assets. Bloomberg reported the approval on Thursday.

Asahi deal reshapes EABL ownership

Asahi, one of Japan’s largest beverage companies, owns brands including Asahi Super Dry and Peroni Nastro Azzurro. The group operates across Japan, East Asia, Europe and the Asia-Pacific region and is listed on the Tokyo Stock Exchange.

For EABL, the transaction would bring a new controlling shareholder to one of East Africa’s largest brewers. The company’s portfolio includes beers and other alcoholic beverages sold across Kenya and several neighboring markets.