Japan’s Asahi Group is acquiring Diageo’s EABL for $2.3 billion

• Diageo is to sell its 65% stake in EABL and its stake in Kenyan spirits division UDVK to Asahi Group.
• The divestments are consistent with Diageo’s strategy of appropriate and selective divestments of non-core assets, even as the company faces enormous debt pressures.
• Estimated net proceeds after taxes and transaction costs of $2.3 billion.

Japan’s Asahi Group Holdings is set to acquire Diageo from EABL, the largest alcohol production company in East Africa, marking the London-listed beer maker’s departure from direct interests in Africa.

Diageo, which is struggling with a mountain of debt and changing market dynamics characterized by an increasing number of young people not drinking alcohol, is selling EABL for $2.3 billion in a transaction expected to close by the middle of next year.

As part of the proposed transaction, Diageo and EABL Plc have agreed to enter into long-term licensing agreements, which will see the brewer, which has a presence in Kenya, Uganda and Tanzania, retain its local brands.

Diageo and EABL plan to enter into long-term licenses for Diageo’s global brands, such as ‘Guinness’, ‘Johnnie Walker’ and ‘Smirnoff Ice’, to ensure they continue to be sold within the target market, Asahi Group said in a statement.

Asahi Group has no intention of buying out EABL’s minority shareholders

With a global presence, primarily in Japan and East Asia, Europe and Asia Pacific, Asahi Group, listed on the Tokyo Stock Exchange, claims it supplies more than 10 billion liters of beverages to consumers worldwide and generates sales of more than $19 billion per year.

Asahi explained that the Japanese group currently has no plans to acquire EABL’s listed shares above a 65 percent shareholding.

“We intend to maintain EABL’s listings. We therefore intend to submit to the EABL board a notice of Asahi’s intention not to make a takeover bid to EABL’s minority shareholders, and we will make a formal application to the Capital Markets Authority in Kenya and Uganda, and the Capital Markets and Securities Authority in Tanzania, requesting relief from making a takeover bid,” the Group’s statement reads in part.

Licensed Diageo Brands

Nik Jhangiani Interim CEO of Diageo said: “We are incredibly proud of the achievements of EABL and our colleagues in Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and the communities they serve. We are delighted to partner with Asahi through the licensing of Diageo brands in the region.

“This transaction delivers significant value to Diageo shareholders and accelerates our commitment to strengthening our balance sheet, bringing the Group well within our targeted leverage ratio range of 2.5 – 3.0x through the sale of non-strategic, non-core assets, in addition to delivering positive operating leverage and tighter capital discipline. This sale, together with USL’s recent announcement to undertake a strategic review of its ownership of RCB, represents material steps in delivering this promise.”

For her part, Jane Karuku, Managing Director and CEO EABL added: “This acquisition marks an important step in accelerating our growth ambition to become the most celebrated beverage company in Africa. The new majority shareholder brings significant knowledge and expertise in innovation and growing successful brands globally that will help us achieve that ambition.”

Atsushi Katsuki, President and Group Chief Executive Officer, Director and Representative Executive Officer of Asahi added: “This company is a leading, high-quality business in Kenya, Uganda and Tanzania, with an unparalleled brand portfolio and marketing capabilities, state-of-the-art manufacturing facilities and strong market shares. Together with its excellent management team and employees, we will pursue sustainable growth and enhancement of business value over the medium to long term, while contributing to the development of local economies.”

Also read: Diageo buys additional shares in EABL to become largest shareholder

Diageo’s most significant divestments in Africa in recent years

• Nigeria (2024): Diageo sold its majority stake in Guinness Nigeria Plc to Singapore-based Tolaram Group, ending direct control of one of Africa’s largest beer operations.
• Ghana (2025): Diageo sold its 80.4% stake in Guinness Ghana Breweries Plc to Castel Group for $81 million (January 2025).
• Cameroon (2022): Diageo sold its Guinness Cameroon business to Castel Group.
• Ethiopia (2022): Diageo sold Meta Abo Brewery to BGI (owned by Castel Group).
• Seychelles (2025): Diageo sold its entire stake in Seychelles Breweries Limited to Phoenix Beverages (April 2025).