The Board of Directors of East African Breweries PLC (EABL) has announced a landmark agreement in which Diageo PLC will sell its majority stake in the iconic East African brewer, along with its shareholding in UDV (Kenya) Limited, to Asahi Group Holdings of Japan — a deal valued at approximately $2.3 billion after tax and transaction costs.
The transaction, the largest Japanese investment in an African alcohol business to date, marks one of the most significant shifts in ownership in the region’s beverage industry. Under the terms of the agreement, Asahi will become the new majority shareholder of EABL, assuming control of its operations across Kenya, Uganda and Tanzania, while preserving beloved local brands and introducing selected global names from its international portfolio.
The deal values EABL at an implied enterprise value of roughly $4.8 billion, based on a multiple of 17 times adjusted EBITDA — a strong indicator of investor confidence in the region’s growth trajectory.
EABL, long the largest beverage company in East Africa, reported robust financial performance in its latest fiscal year, nearing $1 billion in net sales and generating significant earnings before interest, taxes, depreciation and amortization (EBITDA).
Founded in 1922, EABL holds an unmatched presence in the region’s alcohol market, brewing and distributing a wide array of beer, spirits and non‑alcoholic beverages. Its portfolio includes local favourites such as Tusker, Serengeti and Bell, alongside internationally recognised brands.
The company’s extensive value chain not only makes it a household name across East Africa, but also ties it deeply to local economies through supply chains involving thousands of farmers, distributors and retailers — reinforcing its socio‑economic footprint beyond beer alone.
Asahi’s leadership has emphasised its intention to maintain EABL’s local identity, while strategically introducing its global strengths in innovation and brand development. The brewery’s existing production facilities, seasoned management team and regional distribution network will remain intact, with no expected job losses resulting from the ownership transition.
EABL Managing Director and CEO Jane Karuku described the acquisition as a crucial step toward accelerating the company’s ambition to be “the most celebrated beverage business in Africa,” citing Asahi’s global expertise as a catalyst for future growth.
While Diageo is exiting as majority shareholder, the British multinational will retain a presence in the region through long‑term licensing and transitional agreements. These will ensure the continued production and distribution of key Diageo brands — including Guinness, Smirnoff and Captain Morgan — across East Africa.
According to Diageo’s interim CEO Nik Jhangiani, the sale is part of a broader strategy to streamline the company’s portfolio, strengthen its balance sheet and focus on core global markets. He said the company takes pride in building East Africa’s largest beer business and looks forward to its continued success under new ownership.
The transaction is also seen as a vote of confidence in East Africa’s demographic and economic potential, characterised by a young and growing population, rising incomes, and expanding consumer demand. These drivers have made the region increasingly attractive to global investors seeking long‑term returns.
Regulatory approvals are still required in the three countries where EABL operates, with completion of the deal expected in the second half of 2026. During the transition period, Diageo will support Asahi to ensure a smooth transfer of operations.
As the world’s beverage landscape evolves, this high‑profile acquisition cements Asahi’s strategic expansion into Africa and heralds a new chapter for one of East Africa’s most historic and influential companies — with implications for investors, markets and consumers alike.
