Diageo plc has agreed to sell its entire shareholding in East African Breweries PLC (EABL) to Japan’s Asahi Group Holdings, Ltd. The deal, which is subject to regulatory approvals, marks the multinational’s exit from Kenya’s largest brewing company.
In a cautionary announcement issued by EABL on December 17, 2025, the company said its board was notified by Diageo on the afternoon of Tuesday, December 16, 2025, of the imminent transaction.
Diageo currently holds 65 per cent of EABL’s issued shares through its wholly owned indirect subsidiary Diageo Kenya Limited, and 53.68 per cent of UDV (Kenya) Limited (UDVK) through Diageo Great Britain Limited. The transaction will result in Diageo disposing of all its stake in EABL.
In a separate announcement issued in London, Diageo confirmed that it had agreed to sell its 100 per cent shareholding in Diageo Kenya Limited as well as its interest in the Kenyan spirits business, UDVK, to Asahi.
Diageo said the disposal is consistent with its strategy of selective divestment of non-core assets and strengthening its balance sheet.
The company estimates net proceeds of approximately $2.3 billion after tax and transaction costs, representing a 17x multiple of adjusted EBITDA and implying an enterprise value of $4.8 billion for 100 per cent of EABL. The transaction is expected to reduce Diageo’s leverage by about 0.25x.
Completion of the deal is subject to regulatory approvals in Kenya, Uganda and Tanzania, with Diageo indicating that completion is expected in the second half of calendar year 2026.
Diageo agrees to sell its EABL shareholding to Asahi Group Holdings
EABL noted that public shareholders hold 35 per cent of its shares. Diageo has informed the board that Asahi intends to apply to capital markets authorities in Kenya, Uganda and Tanzania for an exemption from the requirement to make a mandatory takeover offer for those publicly held shares.
“The Transaction may have a material effect on the price of EABL’s securities,” the brewer said, advising shareholders, investors and the public to exercise caution when trading EABL shares on the Nairobi Securities Exchange, Uganda Securities Exchange and Dar es Salaam Stock Exchange until further announcements are made.
Diageo said it has committed to entering into long-term licensing agreements with EABL to secure the continued production and distribution of key brands, including Guinness, selected local spirits and ready-to-drink products, as well as the import and distribution of Diageo’s international premium spirits. Locally owned brands such as Tusker and Kenya Cane will remain under EABL’s ownership.
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EABL owns 46.32 per cent of UDVK and retains management control, fully consolidating the spirits business in its accounts.
Diageo Interim Chief Executive Officer Nik Jhangiani said the group was “incredibly proud” of what had been built with EABL across Kenya, Uganda and Tanzania, adding that the transaction delivers value for shareholders while supporting Diageo’s balance sheet objectives.
“We are incredibly proud of the achievements of EABL and our colleagues across 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 communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward,” he said.
Asahi described the acquisition as a significant entry into the African alcohol beverage market, noting that it represents the first time a major Japanese brewing company has made an investment of this scale in the sector on the continent.
EABL said Diageo and Asahi will issue separate announcements on the transaction and that the board will make further disclosures in line with the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
NSE halts trading of EABL Plc shares
In turn, the Nairobi Securities Exchange (NSE) has temporarily halted trading in the ordinary shares of East African Breweries PLC following the release of the cautionary announcement by the company.
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In a statement issued on December 17, NSE said trading in the EABL counter was suspended for the remainder of the trading day after the issuer released market-sensitive information during trading hours, alongside prior circulation of related information.
According to the exchange, the decision was taken to promote orderly trading and to ensure equitable access to information for all investors and market participants.
“Trading in the ordinary shares of East African Breweries PLC (EABL) has been halted for the remainder of the trading day,” the NSE said, noting that the move was procedural and in line with market regulations.
NSE further confirmed that trading in EABL shares will resume on the next trading day.
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