- Diageo to sell to Asahi Group its 65% shareholding in EABL, and its shareholding in the Kenyan spirits business, UDVK.
- The disposals are consistent with Diageo’s strategy of appropriate and selective disposals of non-core assets, even as firm faces huge debt pressures.
- Estimated net proceeds after tax and transaction costs of $2.3 billion.
Japan’s Asahi Group Holdings is set to buy out Diageo from East Africa’s largest alcohol manufacturing company EABL, marking the exit of the London listed beer maker from direct interests in Africa.
Diageo, which is grappling with a mountain of debt, and shifting market dynamics that are marked by increasing number of youth not consuming alcohol, is selling EABL for $2.3 billion in a transaction that is set to be complete by mid next year.
As part of the proposed transaction, Diageo and EABL Plc have agreed to enter into long-term licensing agreements that will see the brewer, which has presence across Kenya, Uganda and Tanzania, keep 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 noted in a statement.
Asahi Group has not intention to buyout EABL minority shareholders
With a global presence primarily in Japan and East Asia, Europe, Asia Pacific, Asahi Group which is listed on the Tokyo Stock Exchange, claims it provides over 10 billion liters of beverages to consumers worldwide and generate revenues of over $19 billion per year.
Asahi explained that at the moment, the Japanese Group has no plans of acquiring the publicly traded shares of EABL beyond a 65 percent shareholding.
“We intend to maintain EABL’s listings. Therefore, we intend to serve on the board of directors of EABL a notice of Asahi’s intention not to make a Take-over Offer to the EABL 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 that we be exempted from making a Take-over Offer,” the Group statement reads in part.
Licensing of Diageo brands
Nik Jhangiani Interim Chief Executive Officer of Diageo said: “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.
“This transaction both delivers significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet, returning the Group to well within our target leverage ratio range of 2.5 – 3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline. This disposal, alongside the recent announcement by USL to conduct a strategic review of its ownership of RCB, represent material steps in delivering on this commitment.”
On her part, Jane Karuku, Managing Director and CEO EABL added “This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa. The new majority owner 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 business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares. Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”
Read also: Diageo buys additional shares in EABL to become its leading shareholder
Diageo’s key 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 its largest African 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 operations 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).
