Diageo Exits East African Breweries as Asahi Seals Record-Breaking Entry into Africa
Story: written by Joseph December 17,2025
British drinks giant Diageo Plc has agreed to divest its controlling interest in East African Breweries Plc (EABL), selling its 65 percent stake to Japan’s Asahi Group Holdings in a landmark deal that reshapes ownership of East Africa’s biggest brewing business and marks Japan’s largest-ever move into Africa’s alcoholic beverages market.
Under the agreement announced on Wednesday, Diageo will sell its entire holding in Diageo Kenya Limited, which owns 65 percent of EABL, alongside its 53.68 percent direct stake in UDV Kenya Limited (UDVK), a local spirits producer and importer. EABL holds the remaining 46.32 percent of UDVK, retains management control and will continue to fully consolidate the business.
Diageo said the transaction aligns with its strategy to dispose of non-core assets, strengthen its balance sheet and accelerate deleveraging. Net proceeds after tax and transaction costs are estimated at about $2.3 billion, valuing EABL at an implied enterprise value of $4.8 billion. The deal is expected to cut Diageo’s leverage by around 0.25x.
Calling the acquisition historic, Diageo noted that it is the first time a major Japanese brewer has made an investment of this scale in Africa’s alcohol industry, describing Asahi as a capable steward for EABL’s next growth phase.
Subject to regulatory approvals, the transaction is expected to close in the second half of 2026. EABL will remain listed on the Nairobi Securities Exchange, as well as exchanges in Uganda and Tanzania.
Diageo interim chief executive Nik Jhangiani said the group was proud of EABL’s legacy and performance across East Africa, adding that the sale delivers strong value to shareholders while supporting Diageo’s target leverage range of 2.5x to 3.0x.
EABL, the region’s largest beer producer with operations in Kenya, Uganda and Tanzania, traces its roots back more than 100 years. Asahi said it plans to maintain EABL’s popular local brands while gradually introducing selected global products to the East African market.
The deal also includes long-term licensing and transitional service agreements that will allow EABL to continue producing and distributing Guinness and selected Diageo spirits and ready-to-drink brands. Iconic local labels such as Tusker and Kenya Cane will remain under EABL’s ownership.
Market analysts say the transaction places a premium valuation on EABL compared with its historical trading levels. Following the announcement, the Nairobi Securities Exchange temporarily halted trading in EABL shares, citing the release of market-sensitive information and the need to ensure orderly trading.
