Nairobi, Kenya | December 17, 2025
The Board of Directors of East African Breweries PLC (EABL) has announced that Diageo PLC has agreed to sell its majority shareholding in EABL, alongside its stake in UDV (Kenya) Limited, to Asahi Group Holdings (Asahi). The landmark transaction marks Asahi’s first major investment in the African alcoholic beverages market and represents a significant shift in ownership for one of East Africa’s most prominent consumer goods companies.
A Historic Transaction for East Africa’s Beverage Industry
Under the terms of the agreement, Asahi will become the majority shareholder in EABL, assuming operational control across Kenya, Uganda, and Tanzania. The Japanese brewing giant has committed to preserving EABL’s iconic local brands while also introducing selected globally recognized products from its international portfolio to East African consumers.
This acquisition represents the first time a Japanese brewing major has made an investment of this magnitude in Africa’s alcohol beverage sector, underlining growing international confidence in the region’s long-term growth prospects.
Valuation and Financial Highlights
The transaction is expected to generate net proceeds of approximately USD 2.3 billion (about Kshs 296.5 billion) for Diageo after tax and transaction costs. This reflects a valuation multiple of 17x adjusted EBITDA, implying an enterprise value of USD 4.8 billion (approximately Kshs 619 billion) for 100% of EABL.
The deal underscores the strong fundamentals of EABL and the broader East African market, supported by favorable demographics, expanding consumer demand, and sustained economic growth.
Strategic Rationale and Growth Outlook
EABL has described the transaction as the beginning of a new growth chapter, noting that Asahi will benefit from:
- State-of-the-art production facilities
- A highly experienced Board and management team
- A strong and diversified brand portfolio
- Robust route-to-market capabilities
- Deep relationships with employees, distributors, partners, and customers
In turn, EABL is expected to leverage Asahi’s global expertise in innovation, premium brand building, and operational excellence.
Leadership Commentary
Jane Karuku, Managing Director and CEO of EABL, said:
“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.”
Nik Jhangiani, Interim Chief Executive Officer of Diageo, added:
“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. This transaction delivers significant value for Diageo shareholders and accelerates our commitment to strengthening our balance sheet and capital discipline.”
He further noted that Diageo will continue to partner with Asahi through the licensing of Diageo brands in the region going forward.
Atsushi Katsuki, President and Group CEO of Asahi Group Holdings, said:
“This is a high-quality, leading business in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and strong market positions. Together with its excellent management team and employees, we will pursue sustainable growth and long-term enhancement of corporate value, while contributing to the development of local economies.”
Regulatory Approval and Transition
The transaction is subject to approval by relevant regulatory authorities and is expected to be completed within the 2026 calendar year. EABL has confirmed that no changes to operations or employment are anticipated as a result of the transaction.
In the interim period, Diageo will continue to support Asahi to ensure a smooth transition and successful transfer of operations.
Media Contacts
EABL Media Relations (Kenya):
- Eric Kiniti: +254 722 855 514
- David Kimondo: +254 721 610 103
Tanzania Media Contact:
- Rispa Hatibu
- Tel: +255 685 260 901
- Email: Rispa.Hatibu@diageo.com
About EABL
East African Breweries PLC is a regional leader in beverage alcohol, with a strong presence in Kenya, Uganda, and Tanzania, and products sold in more than 10 countries across Africa and beyond. Its portfolio includes a blend of local and international brands such as Tusker, Guinness, Bell Lager, Serengeti Lager, Kenya Cane, Chrome Vodka, Johnnie Walker, Captain Morgan, and Smirnoff.
About Diageo
Diageo is a global leader in beverage alcohol, with brands sold in nearly 180 countries worldwide. Its portfolio includes Johnnie Walker, Smirnoff, Guinness, Baileys, Don Julio, Tanqueray, and Captain Morgan, among others. The company is listed on the London and New York Stock Exchanges.
About Asahi Group
Founded in Japan in 1889, Asahi Group is a global beverage leader with a diverse portfolio spanning beer, alcoholic and non-alcoholic beverages, and food. Its premium brands include Asahi Super Dry, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Kozel, and Peroni. The Group operates across Japan, East Asia, Europe, and Asia-Pacific, generating annual revenues of approximately JPY 2.9 trillion (USD 19 billion).
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