Diageo to sell its stake in East African Breweries to Asahi

Diageo has announced an agreement to sell its entire shareholding in Diageo Kenya Ltd. to Asahi Group Holdings, marking a major ownership change at East African Breweries Ltd. (EABL). Diageo Kenya holds 65 percent of EABL, the largest beer business in East Africa. The transaction also includes Diageo’s interests in the Kenyan spirits business, United Distillers Vintners Kenya (UDVK).

As part of the deal, Asahi will acquire Diageo’s 53.68 percent directly owned stake in UDVK, a Kenya-based spirits producer and importer. EABL owns the remaining 46.32 percent of UDVK, retains management control, and fully consolidates the business.

EABL has a heritage spanning more than a century and operates across Kenya, Uganda and Tanzania, with a strong growth track record and state-of-the-art production facilities. Asahi, a Japanese listed global beverage leader with a diversified portfolio across beer, alcoholic and non-alcoholic beverages and food, said it intends to preserve established local brands while introducing selected global brands from its portfolio to East African consumers.

Diageo will continue its presence in the region through long-term licensing and transitional service agreements. Locally owned brands such as Tusker and Kenya Cane will remain with EABL, while refreshed agreements will enable EABL to produce Diageo spirits including Smirnoff and Captain Morgan, ready-to-drink brands such as Smirnoff Ice and Orijin, and the iconic Guinness brand under licence, alongside the import and distribution of Diageo’s international premium spirits.

Commenting on the transaction, Nik Jhangiani, Interim Chief Executive Officer (CEO) of Diageo, said, “We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. This transaction delivers significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet.”

Atsushi Katsuki, President and Group CEO of Asahi Group Holdings, added that the business is a “high-quality, leading company,” and said Asahi would pursue sustainable growth while contributing to local economic development.