Nairobi, Kenya — East African Breweries PLC is set to begin a new chapter following the announcement that Japan’s Asahi Group Holdings will replace Diageo PLC as its majority shareholder.
The deal, announced Wednesday, involves the sale of Diageo’s majority stake in EABL and its shareholding in the Kenyan spirits business UDV (Kenya) Limited. This represents the first time a Japanese brewing major has made an investment of this scale in an African alcohol beverage business.
The transaction values 100% of EABL at 4.8 billion dollars. After tax and transaction costs, Diageo is expected to receive net proceeds of approximately 2.3 billion dollars.
The move marks a significant shift in the ownership of one of East Africa’s most iconic corporate entities. Asahi will take control of all operations across Kenya, Uganda and Tanzania. The Japanese company said it intends to preserve beloved local brands while introducing its own global portfolio to the region.
Jane Karuku, managing director and CEO of EABL, said the acquisition marks a significant step in the company’s ambition to become 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, Karuku said.
Diageo, which has been the long-term majority owner of EABL, is using the sale to strengthen its balance sheet and focus on core assets. Nik Jhangiani, interim chief executive officer of Diageo, said the company is proud of the beer business it built in East Africa.
We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward, Jhangiani said. This means popular Diageo labels will continue to be available in the market under the new ownership structure.
Atsushi Katsuki, president and group CEO of Asahi, described EABL as a high-quality company with an unrivalled brand portfolio. He noted that the Japanese firm intends to pursue sustainable growth and contribute to the development of local economies.
The transition is expected to be seamless for employees and consumers. Officials confirmed there are no changes expected in the operations of EABL or its subsidiaries, and no jobs will be impacted by the sale.
The transaction is subject to regulatory approval and is expected to be completed in 2026. Until then, Diageo will continue to support Asahi to ensure a smooth transfer of operations.
