Japanese brewing group Asahi Group Holdings has received regulatory approval to acquire the majority stake in East African Breweries (EABL) from British beverage multinational Diageo for USD 2.3 billion. The Competition Authority of Kenya (CAK) cleared the transaction with the condition that the company must reserve 20 percent of its commercial beverage coolers for rival products.
EABL is the undisputed market leader in the East African beer segment, operating large-scale breweries in Kenya, Uganda, and Tanzania. The company is best known for its flagship beer brand Tusker. The transaction marks a definitive exit from the African beer production market for Diageo, shifting its focus toward a premium spirits portfolio and an asset-light model across the continent. For Asahi, this acquisition represents a major expansion into the fast-growing African market, diversifying its geographic footprint beyond its established strongholds in Japan, Europe, and Oceania.
Diageo and Asahi first announced the transaction in late 2025 (inside.beer, 18.12.2025), following a strategic review by the British company to divest its 65 percent holding in EABL (inside.beer, 31.07.2025). Under the terms of the deal, Asahi acquires the investment vehicle holding the EABL shares, gaining effective control of the regional market leader. The newly imposed regulatory condition concerning cooler space aims to prevent EABL from monopolizing retail refrigeration and to foster fair competition, a move that was previously demanded by smaller regional competitors.
