Japan-listed global beverage group Asahi has agreed to acquire 100 per cent shareholding in Diageo Kenya Limited, the holding company through which Diageo owns a 65 per cent stake in East African Breweries Limited (EABL), in a landmark transaction valued at approximately $4.8 billion.
The deal also includes Diageo’s interests in the Kenyan spirits business United Distillers Vintners Kenya (UDVK). Diageo currently holds 53.68 per cent of UDVK, while EABL owns the remaining 46.32 per cent, retains management control, and fully consolidates the business.
Asahi’s portfolio spans beer, alcoholic and non-alcoholic beverages, and food, and the acquisition marks its first investment of this scale in an African alcoholic beverages business.
Strategic expansion into East Africa
EABL is the largest beer producer in East Africa, with more than a century of operating history and a strong growth track record across Kenya, Uganda and Tanzania. Asahi said it intends to preserve EABL’s well-established local brands while selectively introducing globally recognised brands from its portfolio to East African consumers.
EABL operates modern production facilities and benefits from an experienced board and management team, as well as strong relationships with employees, suppliers and distributors across the region.
As part of the transaction, Diageo has committed to long-term licensing and transitional services agreements with EABL. Locally owned brands, including Tusker and Kenya Cane, will remain with EABL.
Revised licensing arrangements will allow EABL to continue producing selected Diageo spirits such as Smirnoff and Captain Morgan, ready-to-drink brands including Smirnoff Ice and Orijin, as well as the iconic Guinness brand under licence.
EABL will also continue to import and distribute Diageo’s international premium spirits portfolio. Diageo expects net proceeds of approximately $2.3 billion, after tax and transaction costs. The deal values EABL at an enterprise value of $4.8 billion, representing a 17x multiple of adjusted EBITDA for 100 per cent of the business.
Executive reactions Diageo interim chief executive officer Nik Jhangiani said the transaction delivers significant value to shareholders and supports the company’s balance sheet strategy.
“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,” Jhangiani said.
“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.”
Asahi president and group CEO Atsushi Katsuki described EABL as a high-quality, market-leading business.
“EABL has an unrivalled brand portfolio, strong marketing capabilities, modern production facilities and leading market positions across East Africa,” Katsuki said.
“Together with its management team and employees, we will pursue sustainable growth, long-term corporate value, and contribute to the development of local economies.”
Subject to regulatory approvals, completion of the transaction is expected in the second half of calendar year 2026. The acquisition positions Asahi as the new majority owner of one of Africa’s most established brewing businesses, while allowing Diageo to sharpen its strategic focus and accelerate deleveraging.
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