British spirits and beer group Diageo has agreed to sell its entire 65 percent stake in East African Breweries Limited (EABL) and its 53.68 percent holding in UDV Kenya to Asahi Group Holdings in a transaction valued at USD 2.3 billion, net of tax and transaction costs. The deal marks Diageo’s full exit from the Kenyan beer market and is expected to close before the end of 2026, subject to regulatory approvals.
As part of the transaction, Asahi will acquire Diageo Kenya Limited, the investment vehicle through which Diageo holds its EABL shares, giving the Japanese brewer effective control of EABL. The remaining stake in UDV Kenya is held by EABL, which also retains management control of the spirits unit. EABL is expected to remain listed on the stock exchanges in Kenya, Uganda and Tanzania after completion.
Despite the ownership change, EABL will continue to manufacture and distribute key Diageo brands in the region under long-term licensing agreements. These cover Guinness, selected local spirits and ready-to-drink products, as well as the distribution of Diageo’s international spirits portfolio. Core local brands such as Tusker beer and Kenya Cane remain under EABL ownership.
The transaction follows months of strategic review in which Diageo had weighed a partial or full disposal of its EABL stake as part of a shift toward an asset-light model in Africa (inside.beer, 31.07.2025). At the time, EABL was valued by analysts at around USD 2.7–3.0 billion on an enterprise value basis, supported by strong cash generation, leading market shares across Kenya, Uganda and Tanzania, and a portfolio combining beer, spirits and non-alcoholic beverages.
For Diageo, the completed sale fits its broader strategy of divesting non-core beer assets in Africa to strengthen the balance sheet while retaining brand presence via licensing. Asahi, with annual revenues of about USD 19 billion, plans to use EABL as a growth platform in East Africa and is expected to introduce international brands such as Asahi Super Dry, Peroni Nastro Azzurro and Pilsner Urquell to the region once the acquisition is finalized.
