Asahi to Acquire Diageo’s 65% Stake in East African Breweries for $2.3 Billion

By Our Reporter

Asahi to Acquire Diageo’s 65% Stake in East African Breweries for $2.3 Billion

In a landmark deal for the beverage industry, Diageo, the world’s largest spirits manufacturer, has agreed to sell its 65% majority stake in East African Breweries (EABL) to Japan’s Asahi Holdings. The transaction is valued at $2.3 billion, marking the end of Diageo’s direct beer holdings on the African continent.

The deal values EABL—a cornerstone of the Nairobi Securities Exchange and one of the region's most valuable companies—at approximately $4.8 billion. This acquisition represents the largest investment ever made by a Japanese brewer into the African alcohol market.

Strategic Divestment and Global Expansion

For the London-based Diageo, the sale is a core part of a broader strategy to streamline its portfolio, reduce high debt levels, and cut operational costs. The company, known for brands like Johnnie Walker and Captain Morgan, has faced recent challenges including US tariff hikes and shifting consumption habits among younger demographics.

"This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen the balance sheet," stated Nick Jhangiani, Diageo’s interim CEO.

Conversely, the move highlights Asahi’s aggressive global expansion. Having recently sought growth opportunities in South America and Africa, Asahi CEO Atsushi Katsuki noted that EABL provides an "unrivalled portfolio" of marketing expertise and production infrastructure.

Brand Future and Local Operations

EABL, which maintains a significant presence in Kenya, Tanzania, and Uganda, is perhaps best known for its flagship Tusker beer. Under the new agreement:

• Local Brands: EABL will retain ownership of Tusker and other regional brands.

• Partnerships: EABL will enter into new contracts with Diageo to continue the local production of Guinness and various spirits.

• Distribution: The company will continue to import and distribute Diageo’s international spirit labels.

Market Reaction and Leadership

The announcement was met with optimism from investors; Diageo shares rose 1.9% following the news, while EABL shares saw a jump of nearly 4%.

The transition comes at a time of leadership change for Diageo. Dave Lewis, the former head of Tesco, is set to take over as permanent CEO in January, tasked with revitalizing growth for the spirits giant.

The acquisition is expected to be finalized in the second half of 2026, pending regulatory approvals.

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