Kenya: Regulator approves sale of 65% of EABL to Asahi

EABL acknowledged the regulator’s decision. According to Reuters, the authorization requires that sufficient funds be set aside from the transaction proceeds to cover any potential outstanding liabilities. The regulator also mandated that 20% of EABL’s refrigerator space in retail outlets be reserved for competing beverages.

The deal was announced on December 17, 2025. Diageo plans to transfer to Asahi its entire stake in Diageo Kenya Limited, which holds 65% of EABL, along with its direct 53.68% stake in UDV Kenya. The British group estimates the net proceeds from the sale at $2.3 billion, after taxes and fees, implying an enterprise value of $4.8 billion for EABL as a whole.

However, the Competition Authority’s approval does not mean that the transfer of shares is complete. In early September, the High Court of Kenya allowed the regulator to continue its review while maintaining EABL’s ownership structure unchanged during the examination of an appeal before the Capital Markets Tribunal and a separate legal proceeding.

A major change of control in East Africa

EABL primarily operates in Kenya, Uganda, and Tanzania, marketing brands such as Tusker, Serengeti Lager, and Kenya Cane. For the fiscal year ending June 2025, the company reported $996 million in net revenue, $258 million in EBITDA, and $94 million in net profit, according to data released by Diageo at the time of the transaction announcement.

Diageo presents the sale as a step in its debt reduction program. The group indicated that the transaction is expected to reduce its debt ratio by approximately 0.25 times. Asahi, for its part, views EABL as a platform to accelerate its presence in East Africa, leveraging an established portfolio of local brands and production capabilities.

Ongoing legal proceedings

The proposed sale has faced several challenges in Kenya. In April, the High Court rejected a request from Bia Tosha Distributors to block the transaction. Another proceeding, initiated by a minority shareholder, subsequently led the court to temporarily preserve EABL’s control structure while regulators and specialized courts continue their review.

Asahi has stated its intention to keep EABL listed on the stock exchanges of Kenya, Uganda, and Tanzania following the completion of the transaction. The announced agreements also include the continued licensed production or distribution of Diageo’s international brands, including Guinness, Smirnoff, and Captain Morgan, while local brands such as Tusker and Kenya Cane are to remain within EABL’s portfolio.