East African Breweries PLC (EABL) on Wednesday announced a landmark shift in the region’s corporate landscape: Diageo PLC agreed to sell its majority stake in EABL and its shareholding in UDV (Kenya) Limited to Japanese beverage giant Asahi Group Holdings.
The deal, valued at an implied enterprise value of $4.8 billion, signals a strategic pivot for both conglomerates. For Asahi, the acquisition marks a high-stakes entry into the African continent, trading its traditional focus on mature markets for the high-growth demographics of East Africa.
For Diageo, the $2.3 billion in net proceeds provides a critical liquidity injection to de-lever its balance sheet and exit non-core assets. At a transaction multiple of 17x adjusted EBITDA, the deal underscores the premium placed on EABL’s dominant “route-to-consumer” infrastructure.
The transaction grants Asahi control over operations in Kenya, Uganda, and Tanzania.
While Asahi plans to introduce its global portfolio—including its namesake Super Dry label—the group emphasized its commitment to preserving EABL’s heritage brands like Tusker.
“EABL has built the largest beer business in East Africa,” said Nik Jhangiani, Interim CEO of Diageo. “This disposal allows us to return to our target leverage ratio of 2.5x–3.0x while ensuring our brands continue to thrive under Asahi’s stewardship via a long-term licensing agreement.”
Asahi’s entry is not merely a change in ownership but an infusion of technical expertise. Atsushi Katsuki, President and Group CEO of Asahi, highlighted EABL’s state-of-the-art production and seasoned management as the primary drivers for the investment.
“This acquisition marks a significant step in our ambition to become the most celebrated beverage business in Africa,” noted Jane Karuku, MD & CEO of EABL. “Asahi brings global innovation that will accelerate our growth in these rapidly evolving markets.”
The transaction is expected to close in 2026, pending regulatory approvals. In a move to ensure market stability, Asahi confirmed there will be no immediate changes to operations or headcount.
As the sun sets on Diageo’s majority era in Nairobi, the deal cements East Africa’s status as the next frontier for global brewing majors seeking sustainable, long-term returns.
