Japanese brewing giant Asahi Group Holdings has acquired Diageo PLC’s 54% stake in East African Breweries Limited (EABL), including its shareholding in UDV (Kenya) Limited, for $2.3 billion (approx. Kshs 296.5 billion).
The deal values 100% of EABL at $4.8 billion (approx. Kshs 619 billion) and is a landmark investment by a Japanese brewer in Africa’s alcoholic beverages market.
As a majority shareholder of EABL, Asahi takes over operations in Kenya, Uganda, and Tanzania, while continuing to preserve the company’s local brands and introducing globally recognized beverages from its portfolio.
EABL CEO Jane Karuku described the acquisition as a key milestone in the company’s growth strategy. “The new majority owner brings global expertise in brand innovation and market expansion, which will accelerate our ambition to become the most celebrated beverage business in Africa,” she said.
Diageo interim CEO Nik Jhangiani said the sale aligns with the company’s strategy to divest non-core assets and strengthen its balance sheet, helping the company return its leverage ratio to within the 2.5–3.0x target range. “This transaction delivers $2.3 billion in net proceeds to shareholders while allowing continued growth of EABL through licensing arrangements with Asahi,” he said.
EABL’s portfolio includes leading East African beers and spirits such as Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Chrome Vodka, alongside international brands including Johnnie Walker, Captain Morgan, and Smirnoff. Its products are sold in over 10 countries across Africa, with core operations concentrated in Kenya, Uganda, and Tanzania.
The acquisition is subject to regulatory approval and is expected to close in 2026. EABL confirmed that operations will continue as usual, with no job losses anticipated. Diageo will support Asahi during the transition to ensure smooth operational handover.
Asahi CEO Atsushi Katsuki highlighted the strategic value of EABL’s operations. “EABL is a high-quality business with strong market shares, state-of-the-art production facilities, and an exceptional brand portfolio. Together with its experienced management team, we will pursue sustainable growth and long-term value creation, while contributing to local economies,” he said.
