Diageo, the company behind Guinness and Johnnie Walker, has agreed to sell its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. The deal is worth about $2.3 billion in net proceeds after taxes and costs. That’s roughly Sh300 billion at current exchange rates, though reports focus on the dollar figure.
EABL is the biggest beer maker in East Africa. It runs operations in Kenya, Uganda, and Tanzania. Popular brands like Tusker lager and Kenya Cane spirits won’t go anywhere. Asahi says it plans to keep those local favourites just as they are. The company will also bring in some of its own global brands over time.
Under the new deal, EABL will remain listed locally. It stays on the stock exchanges in Nairobi, Dar es Salaam, and Kampala. Asahi becomes the controlling shareholder. But Diageo isn’t walking away completely. They’ve set up long-term licensing agreements. That means EABL can keep producing and selling Guinness in the region. The same goes for some Diageo spirits and ready-to-drink products.
The sale also includes Diageo’s stake in UDV Kenya, a spirits business where EABL already has control. This move lets Diageo exit direct ownership in Kenya while holding onto brand rights through licences.
Why is Diageo doing this? The company wants to cut debt and focus on core areas. They’ve been selling off some beer assets in Africa lately. Analysts have talked about EABL as a possible sale for a while. Diageo says the purchase fits their plan to sell non-core parts and strengthen finances. The deal should lower their debt load a bit.
For Asahi, it’s a big step into Africa. This is the largest investment a major Japanese brewer has made in an African drinks company. Asahi’s boss, Atsushi Katsuki, called EABL a high-quality business with strong brands and modern factories. He sees room for growth in the region.
EABL reported solid numbers last year. Net sales hit around $996 million. Profits were decent too. Shares in EABL jumped a little on the news before settling higher.
The deal needs approval from regulators. It should close in the second half of 2026. Until then, things run as usual.
People in Kenya and East Africa might wonder what the closure means for jobs or prices. So far, no big changes have been announced. Asahi talks about preserving the business and growing it responsibly. Local brands like Tusker stay owned by EABL.
This sale shows how global drinks companies shift focus. Diageo moves toward spirits worldwide. Asahi expands in growing markets like Africa. For drinkers here, your favourite Tusker or Guinness should still be on the shelf.
We’ll watch for more details as the deal moves forward. If approvals come through, Asahi takes the wheel at EABL next year.
