Japan: Asahi to acquire controlling stake in East African Breweries from Diageo

Asahi, the Japanese beverage giant, has agreed to acquire a controlling stake in East African Breweries (EABL) from the UK-based spirits firm Diageo in a deal valued at $2.3 billion.

Under the terms of the agreement, Asahi will acquire Diageo Kenya Ltd, which holds a 65% shareholding in EABL, alongside a 53.68% direct stake in the Kenyan spirits producer and importer UDVK. The transaction values EABL at an implied enterprise value of $4.8 billion.

Based in Nairobi, EABL is the largest beer business in East Africa, operating across Kenya, Uganda, and Tanzania with a brand portfolio that includes Tusker, Serengeti Lager and Chrome Vodka.

In the fiscal year ending 30th June 2025, EABL reported net sales of $996 million and a net income of $94 million. Despite the divestment, Diageo will maintain a regional presence through long-term licensing agreements for the production and distribution of international brands such as Guinness, Johnnie Walker and Smirnoff.

Diageo interim CEO Nik Jhangiani commented: “This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet. We remain committed to returning the group to well within our target leverage ratio range of 2.5 to 3.0 times through disposals of non-strategic, non-core assets”.

The move follows Diageo’s recent exit from other African brewing markets, including the sale of its Guinness Nigeria business to Tolaram Group in 2024.

Source: Diageo / Asahi Group Holdings / The Spirits Business