Japan’s Asahi Makes Historic $2.3B Bet on African Beer Market

Diageo, the world’s largest spirits company known for brands like Guinness, Johnnie Walker, and Smirnoff, has agreed to sell its 65% stake in East African Breweries Ltd. to Japan’s Asahi Group Holdings Ltd., a global beverage leader centered on beer, spirits, and non-alcoholic drinks, in a $2.3 billion deal.

East African Breweries Ltd., a Kenyan-based holding company founded in 1922 and headquartered in Nairobi, operates as East Africa’s largest brewery, producing beer, spirits, wine, and non-alcoholic beverages across the region.

Diageo will sell its 65% shareholding in East African Breweries Ltd. (EABL) to Asahi Group Holdings, along with its 53.68% direct stake in UDV Kenya Ltd. (UDVK), the Kenyan spirits producer and importer where EABL holds the remaining 46.32%.​

The transaction values the 65% EABL stake at approximately $2.3 billion in net proceeds after tax and costs, equating to 17x adjusted EBITDA and implying an enterprise value of $4.8 billion for 100% of EABL. This marks the first time a major Japanese brewing business has made an investment of this size in an African alcohol beverage business. Completion remains subject to regulatory approvals and is expected in the second half of 2026.

Diageo has committed to entering long-term licensing agreements with EABL to ensure the continued production and distribution of key brands including Guinness, local spirits, and ready-to-drink products.​These agreements will also cover the distribution of Diageo’s international spirits portfolio in the region, maintaining brand availability post-sale.​ This arrangement supports a smooth transition while allowing Asahi to leverage EABL’s established operations.

Despite facing domestic challenges from hackers targeting its Super Dry brand and delaying earnings reports, Asahi Group Holdings continues aggressive global expansion.​ In recent years, the company acquired Australia’s Carlton & United Breweries from AB InBev and the UK’s Fuller, Smith & Turner beer business.​ Over the past decade, Asahi has spent at least 2.3 trillion yen ($14.8 billion) on overseas assets, including operations from SABMiller and others.