The news: It is official. Diageo has agreed to sell its majority stake in East African Breweries PLC (EABL) to Japan’s Asahi Group Holdings for $2.3 billion (£1.8bn), as first reported by Javiira Ssebwaami earlier today.

Why it matters: This is the most significant ownership shake-up in the history of Uganda Breweries Limited (UBL).

  • For decades, the strategic direction at Port Bell has been set by Diageo in London. By late 2026, the final word will come from Asahi in Tokyo.
  • This marks the first major entry of a Japanese brewer into the African market, signaling a massive vote of confidence in the continent’s beer consumption growth.

By the numbers:

  • $4.8 billion: The total implied enterprise value of EABL in this deal.
  • 65%: The controlling stake Asahi acquires from Diageo.
  • H2 2026: When the deal is expected to close, pending regulatory green lights.
  • $996 million: EABL’s net sales for the year ending June 2025, underscoring the massive engine Asahi is buying.

The local angle: UBL is one of Uganda’s top taxpayers and employers. Here is how the deal hits home:

  • The “Beer First” Pivot: Diageo has spent the last decade prioritizing its “Total Adult Beverage” strategy, often focusing heavily on spirits like Johnnie Walker. Asahi is, at its core, a beer company (owner of Peroni and Grolsch).
  • What stays: Despite the sale, your favorite drinks aren’t vanishing. Diageo has signed long-term licensing deals with EABL.
    • Guinness: Will still be brewed at Port Bell.
    • Spirits: UBL will continue distributing Diageo’s global spirits portfolio.
  • What moves: The ownership of local jewels like Bell Lager and Uganda Waragi effectively transfers to the Japanese giant.

What they’re saying:

“This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet.” — Nik Jhangiani, Diageo Interim CEO.

Between the lines: Asahi is buying a machine that is already running hot.

  • EABL reported a net income of $94 million last fiscal year despite currency volatility.
  • With the Kenyan spirits business (UDVK) also included in the sale, Asahi secures dominance across the East African bloc.

The transition:

  • Regulatory hurdles: The deal must clear the Capital Markets Authority (CMA) in Kenya and Uganda, as well as COMESA competition watchdogs.
  • Stock market: EABL will remain cross-listed on the Uganda Securities Exchange (USE), meaning local shareholders retain their seats at the table.

Go deeper: Asahi is known for its “Super Dry” precision and premium focus. Industry insiders expect them to invest heavily in brewing technology at Luzira to combat competition from Nile Breweries (AB InBev).

  • Read the full initial report on the deal here.