British drinks giant Diageo has agreed to sell its 65 per cent controlling stake in East African Breweries Limited to Japanese brewer Asahi Group Holdings in a deal valued at $2.3 billion in net proceeds, marking a significant shift in ownership for one of the region’s most iconic beverage companies.
The transaction, announced on Wednesday, includes Diageo’s full holding in Diageo Kenya Limited and its majority stake in Kenyan spirits producer United Distillers Vintners Kenya. It implies an enterprise value of $4.8 billion for EABL, a Nairobi-listed blue-chip with dominant operations in Kenya, Uganda and Tanzania.
EABL, known for local brands like Tusker lager and Kenya Cane, reported net sales of $996 million, EBITDA of $258 million and net income of $94 million for the year ended June 2025, with net debt at $229 million.
Long-term licensing agreements will ensure continued production and distribution of Diageo staples such as Guinness, Smirnoff and Captain Morgan, while local heritage brands remain under EABL ownership.
For Diageo, grappling with high debt, US tariff pressures and shifting consumer trends, the sale aligns with a strategy to divest non-core assets and reduce leverage by about 0.25 times.
Interim chief executive Nik Jhangiani described it as delivering shareholder value while retaining regional brand partnerships.
Asahi, expanding globally after acquisitions in Europe and Australia, views the deal as its largest entry into Africa’s alcohol market. President Atsushi Katsuki praised EABL’s portfolio, facilities and market position, pledging to preserve local brands alongside selective introductions from its international lineup.
Completion, subject to regulatory approvals, is expected in the second half of 2026, with EABL remaining listed on East African exchanges. The move follows Diageo’s recent exits from other African beer holdings, signalling a pivot toward premium spirits focus.
