Diageo sells East African Breweries stake to Asahi for USD 2.3 billion

Kenya | Diageo, the world's largest drinks group, will sell its 65 percent stake in East African Breweries (EABL) to Japan's Asahi Holdings for USD 2.3 billion, divesting its last direct African beer holding. The deal values EABL, a Nairobi blue chip stock and one of East Africa's top five companies by market capitalisation, at around USD 4.8 billion, or 18.6 times EBITDA.

The deal, announced on 17 December, marks the largest investment in an African alcohol business by a Japanese brewer. In the fiscal year ended 30 June 2025, EABL reported net sales of USD 996 million, an EBITDA of USD 258 million and net income of USD 94 million, with net debt at USD 229 million.

EABL, which operates in Kenya, Tanzania and Uganda, is known for its Tusker beer brand, named after the elephant that gored one of the brewery's founders on a hunting expedition in 1923.

Under the deal, EABL will retain Tusker and other local brands and sign new agreements with Diageo to produce Guinness and some spirits, while importing and distributing others.

The deal’s rationales

Diageo, the maker of Johnnie Walker whisky, is grappling with tariff hikes in its key US market, high debt levels and indications some younger consumers could be shifting away from drinking alcohol. It has pledged to sell down non-core assets as part of a plan to reduce debts and cut costs. It said the sale of EABL was consistent with its strategy.

Japan's Asahi has been hunting for opportunities in markets including Africa and South America. Its president and CEO Atsushi Katsuki said EABL offers an unrivalled portfolio of brands, marketing capabilities and production facilities. The deal is set to complete in the second half of 2026.