For $2.3 billion, Diageo sells Asahi its interest in East African Breweries
The largest liquor company in the world, Diageo, agreed to sell Japan’s Asahi Holdings its 65% share in East African Breweries (EABL) for $2.3 billion, giving up its final direct interest in African beer.
Diageo and Asahi announced on Wednesday that the agreement valued EABL, a blue-chip firm with headquarters in Nairobi and one of the top five corporations in East Africa by market capitalization, at around $4.8 billion.
According to a joint release, it also represents the biggest investment made by a Japanese brewer in an African alcoholic beverage company.
Diageo, a London-listed business that produces Captain Morgan rum and Johnnie Walker whiskey, is dealing with high debt levels, tariff rises in the US, its main market, and indications that some younger consumers may be shifting away from alcohol.
As part of a strategy to cut expenses and debt, it has promised to sell non-core assets. It said that the EABL transaction was in line with its plan.
At 08:58 GMT, EABL shares increased by about 4%, while Diageo shares increased by 1.9%.
When Dave Lewis takes over as CFO in January, Jhangiani will return to the position. In an effort to spur growth, the former Tesco director was named CEO of Diageo.
In its pursuit of international expansion, Japan’s Asahi has been searching for prospects in regions including South America and Africa. Atsushi Katsuki, the company’s president and CEO, stated that EABL has an unparalleled portfolio of brands, marketing skills, and production facilities.
In the latter part of 2026, the agreement will be finalized.
