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UK’s Diageo to sell 65% stake in EABL to Japan’s Asahi in $2.3bn deal
Subject to regulatory approvals, completion is expected in the second half of calendar year 2026
by JACKTONE LAWI
News
18 December 2025 - 04:57
In Summary
- Diageo Kenya Limited holds 65 per cent of EABL, East Africa’s largest beer maker, as well as Diageo’s interests in the Kenyan spirits business, United Distillers Vintners Kenya (UDVK).
- Under the terms of the transaction, Asahi will become majority owners of one of East Africa’s leading businesses, assuming control of all operations in Kenya, Uganda and Tanzania.
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EABL MD & CEO Jane Karuku /HANDOUT
Global brewing giant Diageo is selling its 65 per cent shareholding in East African Breweries (EABL) to Japanese beverage group Asahi Group Holdings in a $2.3billion (Sh296.59 billion) deal.
The deal, announced on Tuesday, will also see Diageo dispose of its shareholding in the Kenyan spirits business, United Distillers Vintners Kenya (UDVK), to the Tokyo-headquartered firm, marking one of the largest foreign investments by a Japanese brewing company in Africa.
The sale to be completed in 2026 marks the end of a nearly 25-year era, since Diageo took majority control of EABL in 2000 following its formation through the merger of Guinness Plc–which previously held a minority stake and Grand Metropolitan in 1997.
The announcement saw EABL, one of the crown jewels of Kenyas corporate scene record a seven per cent jump in its share price on Wednesday afternoon to trade at Sh251.25 on December 16.
This saw EABL shares recorded massive price gains, hitting a new 52-week high of Sh252.00.
This new deal places the value of the regional brewer at about $4.8 billion (Sh620 billion), effectively transferring Diageo’s controlling interest in EABL to the Tokyo-listed beverage group.
Diageo Kenya Limited holds 65 per cent of EABL, East Africa’s largest beer maker, as well as Diageo’s interests in the Kenyan spirits business, United Distillers Vintners Kenya (UDVK).
Under the terms of the transaction, Asahi will become majority owners of one of East Africa’s leading businesses, assuming control of all operations in Kenya, Uganda and Tanzania. Asahi will preserve beloved local brands while introducing globally recognized names from its portfolio to consumers in East Africa.
“This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa. The new majority owner brings significant knowledge and expertise in innovation and growing successful brands globally that will help us achieve that ambition,” said EABL MD & CEO Jane Karuku.
The transaction also includes Diageo’s 53.68 per cent direct stake in UDVK, a Kenya-based spirits producer and importer.
EABL owns the remaining 46.32 per cent of UDVK, retains management control and fully consolidates the business.
Starting early 2020, Diageo has been exiting direct ownership of beer production assets across markets, opting for an “asset-light” model focused on brand licensing and spirits distribution rather than capital-intensive breweries.
In Kenya however, the firm had in 2023 increased its stake in EABL to the current 65 per cent after it launched a partial tender offer in late 2022 (October) to increase its stake in EABL.
The UK based firm's' interim Chief Executive Officer Nik Jhangiani said the transaction delivers both significant value for Diageo shareholders and accelerates commitment to strengthen the company’s balance sheet.
"We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward,” said Jhangiani.
“We remain committed to returning the Group to well within our target leverage ratio range of 2.5-3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline.”
Asahi President and Group Chief Executive Officer, Atsushi Katsuki, said that through the acquisition, Asahi we will pursue sustainable growth and medium- to long-term enhancement of corporate value, and the development of the local economies.
“This business is a high-quality, leading company in Kenya, Uganda and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares,” said Katsuki.
This transaction is subject to regulatory approval by the relevant government agencies and is expected to be completed in the calendar year 2026.
Diageo has committed to enter into long-term licensing agreements with EABL to secure the continued production and distribution of Guinness, local spirits and ready-to-drink brands, as well as the distribution of Diageo international spirits.
The acquisition of EABL represents the first time a major Japanese brewing business has made an investment of this size in an African alcohol beverage business.
UK’s Diageo to sell 65% stake in EABL to Japan’s Asahi in $2.3bn deal
Subject to regulatory approvals, completion is expected in the second half of calendar year 2026
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