Asahi Group to acquire Diageo’s majority stake in EABL
A bottle of Don Julio, tequila from Diageo, the world's leading spirits maker, is displayed at a liquor store, in Monterrey, Mexico, December 10, 2024.
Dar es Salaam. Japanese brewing giant Asahi Group Holdings has agreed to acquire Diageo Plc’s majority stake in East African Breweries Plc (EABL), marking one of the largest foreign investments in East Africa’s beverage sector and Asahi’s first major entry into the African market.
EABL said on Wednesday that Diageo will sell its controlling interest in the brewer, alongside its shareholding in United Distillers and Vintners (Kenya) Limited, to Asahi, subject to regulatory approvals.
The transaction values EABL at an implied enterprise value of about $4.8 billion based on a multiple of 17 times adjusted EBITDA. Diageo expects net proceeds of $2.3 billion (about 5.7 trillion) after tax and transaction costs.
Once completed, Asahi will become the majority shareholder of EABL, assuming control of its operations across Kenya, Uganda and Tanzania, where the group produces and markets some of the region’s most established beer and spirits brands.
EABL said the deal signals strong investor confidence in the long-term growth prospects of the East African market, supported by favourable demographics, rising incomes and expanding consumer demand.
Under the new ownership, Asahi said it plans to preserve EABL’s well-known local brands while gradually introducing selected global brands from its international portfolio. EABL’s existing production facilities, management team and distribution network will remain in place.
“There are no changes expected in the operations of EABL and its subsidiaries, and no jobs will be affected by this transaction,” the company said in a statement.
EABL Managing Director and Chief Executive Officer Jane Karuku described the deal as a major milestone for the brewer.
“This acquisition marks a significant step in accelerating our ambition of becoming the most celebrated beverage business in Africa. The new majority owner brings global expertise in innovation and brand-building that will support our growth agenda,” she said.
Diageo’s interim chief executive officer, Mr Nik Jhangiani, said the sale forms part of the group’s strategy to strengthen its balance sheet by disposing of non-core assets, while continuing to license Diageo brands in the region.
Asahi Group President and CEO Atsushi Katsuki said EABL is a high-quality business with strong market positions in East Africa, adding that the company intends to pursue sustainable long-term growth while contributing to local economic development.
The transaction is expected to be completed in 2026, following approvals from relevant regulators in the three countries.
EABL is a leading beverage alcohol producer in East Africa, with flagship brands including Tusker, Guinness, Serengeti Lager, Bell Lager and Kenya Cane, alongside several international spirits brands.
Last month, the company named former Tesco chief Dave Lewis as its new CEO to revive growth.
