Competition Authority of Kenya approves Diageo sale of EABL stake to Asahi
The $2.3 billion transaction clears a key regulatory hurdle, with EABL remaining listed in Kenya, Uganda and Tanzania after the proposed ownership change.
KENYA – The Competition Authority of Kenya (CAK) has approved Diageo’s sale of its 65% stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings, clearing a key regulatory hurdle for the $2.3 billion transaction.
Diageo announced in December 2025 that it had agreed to sell its controlling stake in EABL to Asahi as part of its strategy to exit the African market. The transaction is also expected to support Diageo’s debt reduction programme.
“EABL notes the approval by the Competition Authority of Kenya regarding the proposed transaction between Diageo PLC and Asahi Group Holdings, Ltd,” EABL said in a statement to Reuters.
CAK had previously directed EABL to reserve sufficient funds from the transaction consideration to meet any outstanding liabilities. The regulator also required EABL to reserve 20% of its cooler space in retail outlets for competitors’ beverages.
EABL operates primarily in Kenya, Uganda and Tanzania and markets brands including Tusker, Serengeti Lager and Kenya Cane. For the financial year ended June 2025, the brewer reported $996 million in net revenue, $258 million in EBITDA and $94 million in net profit, according to figures released by Diageo when the transaction was announced.
Diageo has said the sale forms part of its debt reduction strategy and is expected to reduce its debt ratio by approximately 0.25 times.
Asahi views EABL as a platform for expanding its presence in East Africa, supported by the brewer’s established local brands and production capabilities. Asahi has stated that it intends to retain EABL’s listings on the stock exchanges of Kenya, Uganda and Tanzania after completing the transaction.
The agreements also provide for the continued licensed production or distribution of Diageo’s international brands, including Guinness, Smirnoff and Captain Morgan. Local brands such as Tusker and Kenya Cane are expected to remain within EABL’s portfolio.
The proposed acquisition has faced legal challenges in Kenya. In April, the High Court rejected a request by Bia Tosha Distributors to block the transaction. A subsequent proceeding initiated by a minority shareholder led the court to temporarily preserve EABL’s control structure while regulatory and specialised court reviews continued.
EABL reported a 49% increase in net profit to KES18.2 billion ($140.7 million) for financial year 2026, supported by sales growth, cost management and lower financing costs.
The CAK approval brings the transaction closer to completion, subject to the remaining regulatory, legal and transaction requirements.
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