Japanese beverage giant Asahi Group Holdings has agreed to acquire control of East African Breweries PLC (EABL) after striking a deal to buy Diageo’s businesses in East Africa in a transaction valued at $2.3 billion (about Ksh300 billion).

Asahi will purchase 100 per cent of Diageo Kenya Limited (DKL) and 53.68 per cent of UDV (Kenya) Limited (UDVK) from Diageo subsidiaries. Through this deal, Asahi will indirectly acquire Diageo’s 65 per cent stake in EABL, making it the controlling shareholder in the Nairobi-based brewer.

The transaction was announced on December 17, 2025, and is expected to close in the second half of 2026, subject to approvals from competition authorities in Kenya, Uganda and Tanzania. EABL will remain listed on the Nairobi Securities Exchange, as well as the stock exchanges in Uganda and Tanzania.

EABL is one of Kenya’s oldest and most important companies, founded in 1922. It manufactures and sells beer, spirits and ready-to-drink beverages across East Africa.

Its portfolio includes well-known local brands such as Tusker, Senator, Serengeti, Kenya Cane and Chrome. For the year ended June 2025, EABL reported net sales of Ksh128.8 billion and EBITDA of Ksh33.3 billion and employed more than 1,500 people across the region.

As part of the deal, Diageo will not exit the region completely. The British drinks group has agreed to long-term licensing arrangements with EABL.

These agreements will allow EABL to continue producing and distributing Diageo’s global brands, including Guinness, Johnnie Walker and Smirnoff Ice, within East Africa. Diageo will also retain rights to import and distribute its international spirits through EABL.

Asahi said it has no intention of buying out minority shareholders and will apply for exemptions from mandatory takeover rules with capital markets regulators in Kenya, Uganda and Tanzania. About 35 per cent of EABL shares are held by public investors.

Asahi’s East Africa play

The Japanese group said the acquisition fits its medium- to long-term strategy of expanding beyond its traditional markets. Asahi views Kenya and the wider East African region as attractive due to population growth, rising incomes and long-term economic expansion.

The company already owns global beer brands such as Asahi Super Dry, Peroni Nastro Azzurro, Pilsner Urquell and Grolsch, and generates around Ksh2.4 trillion in annual revenue.

Diageo said the sale supports its strategy of selective disposals and balance sheet strengthening. The company expects the transaction to reduce its leverage by about 0.25 times.

For Kenya, the deal marks one of the largest foreign acquisitions in the country’s corporate history. It brings a new long-term strategic owner into one of the country’s most important listed companies, while keeping EABL locally listed and operationally anchored in East Africa.

Asahi’s chief executive, Atsushi Katsuki, said the group plans to work with EABL’s existing management and employees to grow the business and contribute to local economies in Kenya, Uganda and Tanzania.

“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,” he said.

“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.

NSE halts EABL trading

Following the announcement of the transaction, the Nairobi Securities Exchange (NSE) temporarily halted trading in EABL shares on Wednesday, December 17, 2025. The exchange said it suspended trading for the remainder of the day after EABL issued a cautionary statement during market hours, alongside the release of market-sensitive information.

In a statement, the NSE said the move aimed to promote orderly trading and ensure all investors had equal access to material information before making decisions. Trading in the EABL counter is expected to resume on the next trading day in line with standard exchange procedures.

The halt coincided with Diageo’s disclosure that it had agreed to sell its 65 per cent stake in EABL to Asahi Group Holdings. The NSE said such temporary suspensions are a routine regulatory measure used when major corporate developments emerge during active trading sessions, to limit speculation and protect market integrity.