Japanese brewing giant Asahi Group Holdings has agreed to acquire Diageo PLC’s majority stake in East African Breweries PLC (EABL), marking Asahi’s first major investment in the African alcoholic beverages market.
In a statement issued on Tuesday, EABL’s Board of Directors confirmed that Diageo will sell its controlling interest in EABL, along with its shareholding in the Kenyan spirits business, UDV (Kenya) Limited, to Asahi. Upon completion of the transaction, Asahi will assume majority ownership and operational control of EABL’s businesses across Kenya, Uganda and Tanzania.
The deal values EABL at an implied enterprise value of approximately $4.8 billion (about KSh619 billion), based on a multiple of 17 times adjusted EBITDA. Diageo is expected to receive estimated net proceeds of $2.3 billion (approximately KSh296.5 billion) after tax and transaction-related costs.
Asahi said the acquisition underscores its confidence in the long-term growth prospects of EABL and the wider East African region, supported by strong demographic trends and improving economic fundamentals. The Japanese group plans to retain EABL’s well-established local brands while gradually introducing selected global brands from its international portfolio to East African consumers.
“This acquisition represents a significant milestone in our expansion strategy and a strong vote of confidence in the East African beverage market,” Asahi President and Group CEO Atsushi Katsuki said. “Together with EABL’s experienced management team and employees, we will pursue sustainable growth and long-term value creation while contributing to local economic development.”
EABL Managing Director and CEO Jane Karuku described the transaction as a catalyst for the company’s next phase of growth. “The new majority shareholder brings deep expertise in innovation and building successful brands globally, which will support our ambition of becoming the most celebrated beverage business in Africa,” she said.
For Diageo, the sale forms part of a broader strategy to streamline its portfolio and strengthen its balance sheet. Interim CEO Nik Jhangiani said the disposal would help return the group to its target leverage range of 2.5x to 3.0x, while delivering value to shareholders.
“EABL has grown into the largest beer business in East Africa, driven by passionate people and strong consumer connections,” Jhangiani said. “We look forward to continuing our partnership with Asahi through the licensing of Diageo brands in the region.”
The transaction remains subject to regulatory approvals from relevant authorities and is expected to close in 2026. EABL said there will be no changes to its operations or workforce as a result of the deal. Diageo will continue to support the business during the transition period to ensure continuity.
