NAIROBI, Kenya — In a transformative move for the African beverage sector, Japan-listed global giant Asahi Group Holdings has reached an agreement to acquire a 100 percent shareholding in Diageo Kenya Limited.
This holding company possesses a 65 percent controlling stake in East African Breweries Limited (EABL), valuing the landmark transaction at approximately $4.8 billion.
The acquisition further encompasses Diageo’s interests in United Distillers Vintners Kenya (UDVK).
Currently, Diageo holds 53.68 percent of UDVK, with EABL owning the remaining 46.32 percent. Under the new arrangement, EABL will continue to manage and fully consolidate the UDVK business.
A strategic entry into Africa
This deal marks Asahi’s first large-scale investment in an African alcoholic beverages firm.
Asahi, whose diverse portfolio includes beer, food, and various alcoholic and non-alcoholic drinks, intends to leverage EABL’s centennial history and dominant market presence across Kenya, Uganda, and Tanzania.
Asahi has signaled its intent to maintain EABL’s iconic local identity while gradually introducing its own global brands to the East African market.
EABL’s infrastructure, including state-of-the-art production facilities and a robust supply chain—was cited as a key driver for the acquisition.
Brand protection and licensing agreements
To ensure a smooth transition, the agreement includes several critical licensing frameworks:
- Local heritage: Indigenous brands such as Tusker and Kenya Cane will remain under EABL’s ownership.
- Diageo licensing: EABL will continue to produce selected Diageo brands under license, including Smirnoff, Captain Morgan, and Guinness.
- Ready-to-Drink (RTD): Brands like Smirnoff Ice and Orijin are also covered under these revised licensing arrangements.
- Distribution: EABL will maintain its role as the regional importer and distributor for Diageo’s international premium spirits.
Diageo expects to realize net proceeds of roughly $2.3 billion after taxes and transaction costs. The $4.8 billion enterprise value represents a 17x multiple of the business’s adjusted EBITDA.
Leadership perspectives
Diageo Interim CEO Nik Jhangiani emphasized that the sale aligns with the company’s broader financial goals:
“We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. Together, we have built the largest beer business in East Africa.” “This transaction accelerates our commitment to strengthening our balance sheet and returning the Group to well within our target leverage ratio of 2.5–3.0x through disciplined capital allocation and the disposal of non-core assets.”
Also Read: NACADA’s tough new alcohol control plan spark industry backlash in Kenya
Asahi President and Group CEO Atsushi Katsuki expressed confidence in EABL’s market-leading position:
“EABL has an unrivalled brand portfolio, strong marketing capabilities, modern production facilities and leading market positions across East Africa.” “Together with its management team and employees, we will pursue sustainable growth, long-term corporate value, and contribute to the development of local economies.”
The completion of the deal is contingent upon regulatory approvals and is projected for the second half of 2026.
Once finalized, Asahi will emerge as the primary owner of one of Africa’s most established brewing operations, while Diageo focuses on deleveraging and refining its global strategic focus.
