Asahi Group acquires EABL in a landmark deal that marks the Japanese brewing giant’s first major entry into Africa’s alcoholic beverages market.
East African Breweries PLC (EABL) announced that its majority shareholder, Diageo PLC, has agreed to sell its controlling stake in the brewer, together with its shareholding in UDV (Kenya) Limited, to Asahi Group Holdings.
The transaction will see Asahi become the majority owner of one of East Africa’s most established beverage companies, a move that highlights growing investor confidence in the region’s long-term economic and consumer growth prospects.
Under the agreement, Asahi Group acquires EABL and will take charge of operations across Kenya, Uganda and Tanzania. While the new owner plans to safeguard EABL’s well-known local brands, it will also introduce selected globally recognised brands from its international portfolio to the East African market.
The deal is significant in scale and scope, marking the first time a Japanese brewing major has made such a sizeable investment in an African alcohol beverage business. Analysts say this underscores East Africa’s rising profile as a strategic and fast-growing consumer market.
The transaction is valued at an estimated $2.3 billion (about Kshs 296.5 billion) in net proceeds after tax and transaction costs. This reflects a multiple of 17 times adjusted EBITDA and implies an enterprise value of $4.8 billion (approximately Kshs 619 billion) for the full EABL business.
EABL said the acquisition demonstrates strong confidence in the company’s fundamentals, including its modern production facilities, experienced leadership, established route-to-market, and long-standing relationships with employees, partners and customers across the region.
EABL Managing Director and CEO Jane Karuku said the transaction supports the company’s long-term growth vision.
“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,” Karuku said.
Diageo Interim Chief Executive Officer Nik Jhangiani described the deal as a proud milestone in Diageo’s East African journey.
“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,” he said.
Jhangiani added that the transaction delivers strong value for Diageo shareholders while supporting the group’s broader strategy to strengthen its balance sheet and sharpen its focus on core assets.
Asahi Group President and Group CEO Atsushi Katsuki said EABL stood out as a high-quality business with strong regional leadership.
“This business is a leading company in Kenya, Uganda and Tanzania, with an unrivalled brand portfolio, strong marketing capabilities and state-of-the-art production facilities. Together with its excellent management team and employees, we will pursue sustainable growth and long-term enhancement of corporate value, while contributing to the development of the local economies,” Katsuki said.
The transaction is subject to approval from relevant regulatory authorities and is expected to be completed in calendar year 2026.
EABL confirmed that there will be no changes to its operations or workforce, and no jobs are expected to be affected by the deal. During the transition period, Diageo will continue to support Asahi to ensure a smooth handover and continuity of operations.
As Asahi Group acquires EABL, the deal opens a new chapter for one of East Africa’s most established beverage companies, positioning it for sustained growth in an increasingly competitive and evolving regional market.
