The High Court has declined to grant conservatory orders sought to stop the proposed Diageo–Asahi transaction involving East African Breweries Plc (EABL), clearing the way for the deal to proceed.
In a statement on June 17, 2026, EABL said it welcomed the ruling and noted that the court had stressed the transaction had public-interest and public-finance implications.
The application was brought by JILK Construction Company Limited and other petitioners who sought to halt the deal until a KSh2.45 billion compensation dispute connected to the construction of Kenya Breweries Limited’s Kisumu brewery is resolved.
“East African Breweries PLC (EABL) welcomes today’s High Court ruling declining to grant conservatory orders sought by JILK Construction Company Limited and others in relation to the proposed Diageo-Asahi transaction involving Diageo’s shareholding in EABL,” read part of the statement.
EABL Deal Survives Another Court Challenge
The company said it had respected the court process throughout and would continue to defend the matter through lawful channels, adding that it remains focused on long-term shareholder value.
EABL also pointed out that the transaction has already received full regulatory approvals in Uganda and Tanzania, with clearance from Kenya’s Competition Authority still pending.
The brewer said unrelated historical disputes should not be used to delay or derail a deal it described as being of significant economic importance, citing its role as a major taxpayer and employer in the region.
Also Read: High Court Rejects Bia Tosha Bid to Halt KSh297 Billion EABL Stake Sale to Asahi Group
“The transaction has received full and unconditional approvals in Uganda and Tanzania. The outstanding regulatory approval remains merger clearance from the Competition Authority of Kenya,” read part of the statement.
“In light of today’s ruling, it is clear that unrelated historical disputes should not be used to delay or derail a transaction of significant public and economic interest.”
Also Read: Court Clears Diageo Exit from EABL, Lifts Freeze on Ksh 297 Billion Sale to Asahi
Asahi Clears Major Regulatory Hurdle
The ruling comes weeks after the High Court dismissed an application by Bia Tosha Distributors Limited seeking interim orders to stop the completion of the proposed sale of stake involving Diageo PLC, Asahi Group Holdings and EABL.
In a ruling delivered on Tuesday, June 2, Justice Gregory Mutai found that Bia Tosha had already opted to seek relief at the Court of Appeal and could not return to the High Court to seek similar conservatory orders.
The judge therefore dismissed the fresh application dated May 4, 2026, with costs.
The application sought to stop the deal from proceeding until the Court of Appeal determines a case challenging Asahi Group’s planned acquisition of Diageo’s 65 percent stake in EABL, a transaction valued at about US$2.3 billion (KSh297billion).
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