ASAHI GROUP ENTERS AFRICAN MARKET WITH ACQUISITION OF DIAGEO’S MAJORITY STAKE IN EABL

East African Breweries (EABL) has confirmed that Diageo has agreed to divest its controlling interest in EABL, along with its ownership in the Kenyan spirits company UDV (Kenya) Limited, to Asahi Group Holdings.

This strategic move marks the inaugural large-scale investment by a major Japanese brewer into Africa’s alcoholic beverage sector. Through this agreement, Asahi will assume majority control of the prominent East African enterprise, taking over operations across Kenya, Uganda and Tanzania. 

The company plans to maintain the region’s cherished local brands while also introducing its own global beverage portfolio to East African consumers. The deal is valued at an estimated $2.3 billion (approximately Kshs 296.5 billion) in net proceeds after tax and costs, representing a multiple of 17 times EABL’s adjusted EBITDA. This implies a total enterprise value of $4.8 billion (approximately Kshs 619 billion) for EABL.

Jane Karuku, MD & CEO of EABL, stated, “This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa. The new majority owner brings significant knowledge and expertise in innovation and growing successful brands globally that will help us achieve that ambition.”

The investment signals strong confidence in EABL’s long-term growth potential and the East African region’s future, supported by positive demographic and economic trends. The transition is expected to enable the respected, publicly-listed company to continue thriving under its new ownership.

EABL anticipates a new phase of expansion with Asahi, leveraging its established legacy in East Africa’s vibrant and fast-growing beverage markets. Asahi will gain access to EABL’s advanced production facilities, experienced leadership team, robust brand portfolio, efficient distribution network, and strong relationships with employees, partners, and customers.

Atsushi Katsuki, President and Group CEO of Asahi, added, “This business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares. Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”

The transaction remains pending regulatory approvals and is projected to finalise in 2026. No operational disruptions or employment impacts at EABL PLC and its subsidiaries are anticipated as a result of the ownership change.

Diageo will support Asahi throughout the interim period to ensure a seamless transition and successful transfer of operations.