Diageo to Exit East African Breweries as Asahi Takes Control Diageo is selling its 65% stake in East African Breweries to Japan’s Asahi in a landmark deal that reshapes East Africa’s beer and spirits landscape. While Diageo exits ownership, it stays in-market through long-term licensing for Guinness and other global brands. Completion is expected in 2026, pending approvals.

Global spirits giant Diageo has agreed to sell its majority stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings, marking a significant shift in the ownership of East Africa’s largest beer producer.

Under the deal, Diageo will sell its 65% shareholding in EABL, along with its interests in the Kenyan spirits business, United Distillers and Vintners Kenya (UDVK), to Asahi.

The transaction is expected to generate net proceeds of approximately $2.3 billion for Diageo after tax and transaction costs, valuing EABL at an implied enterprise value of $4.8 billion.

Diageo said the disposal aligns with its strategy to exit non-core assets and strengthen its balance sheet, reducing leverage by an estimated 0.25 times.

The company has committed to returning leverage to its target range of 2.5–3.0x through asset disposals, operating discipline, and capital efficiency.

Despite the exit, Diageo will retain a strong commercial presence in the region through long-term licensing and distribution agreements with EABL.

These arrangements will ensure the continued production and distribution of iconic brands such as Guinness, Smirnoff, Captain Morgan, and selected ready-to-drink products, while locally owned brands like Tusker and Kenya Cane will remain under EABL’s ownership.

The acquisition represents the first time a major Japanese brewing company has made an investment of this scale in Africa’s alcohol beverage sector. Asahi described EABL as a high-quality market leader in Kenya, Uganda, and Tanzania, with strong brands, modern production facilities, and deep local roots.

Diageo Interim Chief Executive Officer Nik Jhangiani said the transaction delivers significant value for shareholders while positioning EABL for its next phase of growth under new ownership.

Asahi President and Group CEO Atsushi Katsuki praised EABL’s management and workforce, expressing confidence in the company’s long-term potential.

Subject to regulatory approvals, the transaction is expected to be completed in the second half of 2026.