Overview:
Diageo agrees to sell its 65% stake in East African Breweries to Japan’s Asahi for $2.3bn. The deal marks a major shift in the African alcohol market.
Diageo has agreed to sell its majority stake in East African Breweries PLC to Japan’s Asahi Group Holdings in a deal worth approximately $2.3bn (£1.8bn).
The London-listed spirits giant confirmed on Wednesday that it is offloading its 65% shareholding as part of a wider strategy to sell non-core assets and reduce its debt.
The transaction, which is expected to complete in the second half of 2026, marks the first major entry by a Japanese brewer into the African alcohol market on this scale.
Under the terms of the agreement, Diageo will receive net proceeds of $2.3bn. The deal includes a direct stake in the Kenyan spirits business UDVK and values the entirety of East African Breweries (EABL) at $4.8bn.
Despite the sale, Diageo’s most famous exports will not disappear from the region. The company has signed long-term licensing deals to ensure that Guinness, along with other selected spirits and ready-to-drink brands, will continue to be produced and sold across East Africa.
Nik Jhangiani, Diageo’s interim chief executive, said the sale delivered significant value for shareholders and would help the company strengthen its balance sheet.
EABL remains a dominant force in the East African market. In the financial year ending June 2025, the company reported net sales of $996m and a net income of $94m.
The company will remain listed on stock exchanges in Kenya, Uganda and Tanzania after the deal is completed.
The acquisition follows a trend of global brewing giants looking toward emerging markets for growth. For Asahi, the move provides a significant foothold in a region with a rapidly growing middle class and increasing demand for premium beverages.
The sale is currently pending regulatory approvals.