Asahi acquires Diageo's East African operations

2,3 billion dollar deal to strengthen presence in emerging markets

On 17 December 2025, Asahi Group Holdings, Ltd announced its decision to acquire 100% of Diageo Kenya Limited (DKL) and 53.68% of UDV (Kenya) Limited (UDVK) from two subsidiaries of Diageo plc. The transaction will enable Asahi to indirectly acquire 65% of East African Breweries PLC (EABL), a leading producer and marketer of beer, spirits and RTDs in Kenya, Uganda and Tanzania.

The acquisition is part of the Japanese group's medium- to long-term strategy, which is focused on core brand growth, premiumisation and geographical expansion. East Africa is a rapidly developing market, driven by population growth and economic growth.

The Target Business portfolio includes beer brands such as Senator, Tusker and Serengeti, and spirits such as Chrome and Kenya Cane. Diageo and EABL will also maintain long-term licensing agreements for the distribution of global brands such as Guinness, Johnnie Walker and Smirnoff Ice.

Asahi has stated that it does not intend to increase its stake beyond 65% and that it wishes to maintain EABL's listing on the stock exchanges of Kenya, Uganda and Tanzania. For this reason, it will request an exemption from the competent authorities from the obligation to launch a public offer on the shares held by minority shareholders.

The total value of the transaction amounts to $2.3 billion. The closing is expected in the second half of 2026, subject to approvals from the antitrust authorities in Kenya, Uganda and Tanzania.

Commenting on the transaction, Atsushi Katsuki, President and CEO of the Asahi Group, emphasised that the acquired business represents ‘a leading company with an unrivalled brand portfolio, state-of-the-art production capabilities and strong market share,’ highlighting the goal of pursuing sustainable growth and contributing to the development of local economies.