Diageo Sells East African Breweries Stake to Asahi for $2.3 Billion

• Diageo sells its 65% share in East African Breweries PLC [EABL] to Japanese giant Asahi for $2.3 billion.

• The sale valued EABL at $4.8 billion, especially after it reported $996 million in net sales and $ 258 million in EBITDA.

In a significant move within the global beverage industry, Diageo sells its 65% stake in East African Breweries Plc (EABL) to Japanese beverage giant Asahi for an estimated $2.3 billion. This transaction values EABL at an enterprise level of approximately $4.8 billion, marking a pivotal moment for both companies as they navigate the competitive landscape of the beverage market.

A Major Transaction in the Beverage Sector

Diageo’s decision to divest its stake in EABL is a part of its broader strategy to strengthen its balance sheet through selective disposals. The deal, projected to close in late 2026, involves not only the sale of Diageo’s direct shareholding in EABL but also its 100% ownership in Diageo Kenya Limited, which holds the majority stake in EABL. This strategic move is expected to reduce Diageo’s leverage by approximately 0.25 times.

Financial Insights

In the fiscal year 2025, EABL reported impressive financial results, with net sales reaching $996 million and EBITDA of $258 million. The company also achieved a net income of $94 million, underscoring its dominant position in the East African beer market, particularly in Kenya, Uganda, and Tanzania. With a net debt of $229 million, EABL has maintained a firm financial footing, making it an attractive acquisition for Asahi.

Diageo finds a strategic buyer.

Asahi, a well-established player in the global beverage market, has a diverse portfolio that includes popular brands like Asahi Super Dry, Peroni Nastro Azzurro, and Pilsner Urquell. Founded in 1889, Asahi generates approximately $19 billion in annual revenues and is keen to expand its footprint in the East African market. The acquisition of EABL positions Asahi as the controlling shareholder while allowing Diageo to maintain long-term licensing agreements for key brands.

Brand Retention and Market Dynamics

One notable aspect of this transaction is that local brands, including the iconic Tusker and Kenya Cane, will remain under EABL’s management. Diageo has committed to licensing agreements that will ensure the continued production and distribution of globally recognized brands such as Guinness and Smirnoff in the region. This strategic arrangement allows Asahi to leverage EABL’s robust market presence while respecting the local brand heritage.

Regulatory Approvals and Market Impact

The completion of this transaction is contingent upon regulatory approvals and is expected to be finalized in the second half of 2026. As EABL continues to be listed on the stock exchanges of Kenya, Uganda, and Tanzania, market analysts are closely monitoring how this shift in ownership will impact the competitive dynamics within the East African beverage sector.

Conclusion

Diageo’s sale of its stake in East African Breweries to Asahi represents a significant shift in the beverage landscape, highlighting the growing importance of strategic partnerships and acquisitions in the global market. Asahi’s investment in EABL not only enhances its portfolio but also reinforces the latter’s market leadership in East Africa. As the transaction unfolds, stakeholders will closely monitor its implications for both companies and the broader industry.