On 17th December 2025, Diageo Plc announced an agreement to dispose its entire interest (65.00%) in East African Breweries Plc (EABL Plc) to Japanese beverage giant Asahi Group Holdings. Separately, through its subsidiary Diageo Great Britain Limited, Diageo Plc also reached an agreement with Asahi to dispose off its 53.68% (East African Breweries owns the remaining 46.32%) shareholding in United Distillers and Vinters (UDV) Kenya Limited.
The transaction marks Asahi Group’s maiden entry into Kenya and the broader East African market, and the Tokyo-headquartered firm is using this acquisition to establish a foundation for long term growth in the region. Asahi is banking on demographic factors and economic expansion to drive its strategy over the long haul. Diageo’s exit in EABL mirrors its strategy in other regions across the African continent where it has disposed off assets, including exits in Western Africa in Ghana and Nigeria. Other exits include Seychelles, Cameroon and Ethiopia, as part of realignment in strategy.
Asahi Group’s acquisition of Diageo’s entire shareholding in East African Breweries is at a consideration of USD 2.354 billion (KES 304 billion), while the consideration for the acquisition of 53.68% of the shareholding in UDV Kenya is USD 646 million (KES 83 billion). The considerations for both acquisitions are on an equity value basis and are expected to close by the second half (H2) of the 2026 calendar year subject to approvals by relevant authorities in Kenya, Uganda and Tanzania.
According to Diageo Plc, the estimated net proceeds after tax and the transaction costs are USD 2.3 billion (KES 296.50 billion), which translates to a multiple of 17x adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). This results in an implied enterprise value for 100% of EABL of USD 4.8 billion (KES 619 billion).
For the 2024/2025 fiscal year ended 30th June 2025, EABL’s EBITDA was USD 258 million (KES 33.3 billion), while its net debt amounted to USD 229 million (KES 29.5 billion). The USD 2.354 billion consideration for 65% of 790,774,356 issued shares in EABL translates to an approximate acquisition price of KES 590.78 per share by Asahi, which exceeds the closing share price on 17th December 2025 of KES 299.75 by 97.1%.
EABL to Retain Ownership of Local Brands, Enter into Updated Agreements
As part of the transaction, EABL will retain ownership of its local brands including Tusker and Kenya Cane and agreements will be refreshed to enable regional brewer EABL to continue producing Diageo spirits such as Smirnoff and Captain Morgan, as well as Ready-To-Drink (RTD) brands including Smirnoff Ice and Orijin.
The refreshed agreements will also allow for licencing of the Guiness brand to EABL as well as the importation and regional Diageo distribution of global premium spirits. Diageo is also set to enter into long term licensing agreements with EABL and Asahi, and transitional service agreements with EABL to ensure business continuity.
The Asahi Group will assume control of EABL’s regional operations, and will keep in place local brands while introducing international beverages from its portfolio to the East African market.
Asahi to Request Exemption from Taking Over EABL Minorities
According to the regulations by the authorities, Asahi is required to extend an offer to take over the minority shareholders in East African Breweries for their interest (35.00%) in the regional brewer on account of Asahi’s position as a majority shareholder (65.00%). However, in its notice on the acquisition, Asahi has pointed out that it has no intention of acquiring part or the entire remaining 35.00% minority shareholding in EABL.
Further, East African Breweries is expected to remain listed at the Nairobi Securities Exchange in Kenya, Uganda Securities Exchange in Uganda, and Dar es Salaam Stock Exchange in Tanzania. Asahi Group will be applying to the relevant capital markets authorities in Kenya, Uganda and Tanzania requesting exemption from pursuing an offer to take over the minorities.
The release of a cautionary statement by EABL Plc on 17th December 2025 regarding this transaction saw trading on EABL PLC (NSE: $EABL) shares at the Nairobi Securities Exchange halted temporarily with a view of ensuring fair access to information by trading participants in the market.
As at the close of trading on 18th December 2025, EABL’s Volume Weighted Average (Share) Price was KES 299.75, up 19.3% from its share price on 16th December 2025, and up 71% year-to-date. At a share price of KES 299.75, with 790,774,356 outstanding shares, EABL’s market capitalization was approximately KES 237 billion (USD 1.8 billion) as of market close on 18th December 2025.
Asahi Group, which is listed on the Tokyo Stock Exchange, has a market capitalization in the region of USD 15.5B. According to Bloomberg, upon the news of Asahi’s agreement with Diageo Plc to acquire a majority stake in EABL, its shares declined the most in over a year amid investor concerns on overpricing of the deal valued at USD 2.3 billion, and postponement of the Japanese beverage giant’s share repurchase scheme.
Brief Overview of EABL Financials in FY 2024/2025
EABL net revenues totaled KES 128.8B (approx. USD 1 billion) in the fiscal year ended 30th June 2025, recording a growth of 4% from the revenues recorded in the fiscal year ended 30th June 2024 and a 2% growth in volume. Net profit for the financial year ended 30th June 2025 closed at KES 12.2 billion, up 12% year-on-year, translating to a net margin of 9.5%. The regional brewer is expected to release its set of half year results for the period ended 31st December 2025 on or about the end of January 2026 if the trends in recent years hold.
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