Japanese brewing giant Asahi to acquire majority stake in EABL for $2.3 billion
Japanese brewing giant Asahi Group Holdings has agreed to acquire Diageo PLC’s majority stake in East African Breweries PLC (EABL) and its Kenyan spirits subsidiary, UDV (Kenya) Limited.
The transaction, valued at a net proceeds of approximately $2.3 billion (Kshs 296.5 billion), marks the first time a Japanese brewing major has made an investment of this magnitude in the African alcohol sector. The deal implies an enterprise value for EABL of $4.8 billion (Kshs 619 billion), representing a 17x adjusted EBITDA multiple.
Under the terms of the agreement, Asahi will become the majority owner of EABL, assuming control of operations across Kenya, Uganda, and Tanzania, as well as Diageo’s shareholding in UDV (Kenya) Limited.
While Asahi intends to introduce its globally recognized portfolio to the region, the company emphasized it will preserve EABL’s “beloved local brands.” The transition is expected to be seamless, with no immediate changes to operations or headcount.
The deal has been hailed as a win-win for both the exiting majority shareholder and the incoming Japanese conglomerate.
Jane Karuku, MD & CEO of EABL, expressed optimism about the future saying, “This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa. The new majority owner brings significant knowledge and expertise in innovation and growing successful brands globally that will help us achieve that ambition.”
Atsushi Katsuki, President and Group CEO of Asahi, said, “This business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares. Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”
Nik Jhangiani, Interim CEO of Diageo, highlighted the strategic value for the British multinational, saying “We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.”
For Diageo, the sale is a critical move toward “tighter capital discipline.” Jhangiani noted that the transaction allows the group to return to its target leverage ratio of 2.5 – 3.0x by disposing of non-strategic assets.
The transaction is currently subject to regulatory approvals and is expected to conclude in calendar year 2026. Until then, Diageo will continue to support Asahi to ensure a smooth transition.
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