The Asahi Group has officially announced its entry into the African market. The Japanese brewing giant has reached an agreement with Diageo PLC to acquire its majority stake in East African Breweries PLC (EABL) and its shareholding in UDV (Kenya) Limited.
The deal, announced today in Nairobi, values the East African beverage leader at an implied enterprise value of $4.8 billion (approx. Ksh. 619 billion).
This acquisition marks the first time a major Japanese brewer has committed an investment of this scale to the African continent. By taking the reins of EABL, Asahi gains immediate control over dominant operations in three of the region’s most vibrant economies: Kenya, Uganda, and Tanzania.
The transaction is valued at a 17x adjusted EBITDA multiple, with net proceeds to Diageo estimated at $2.3 billion (Ksh. 296 billion) after taxes and costs. For Diageo, the divestment is a calculated move to strengthen its balance sheet and sharpen its focus on core global assets, while still maintaining a presence in the region through brand licensing.
Asahi’s leadership emphasized that while they intend to introduce global premium brands like Asahi Super Dry and Peroni to East African consumers, the preservation of local “jewels” is a top priority. EABL’s portfolio, home to iconic names like Tusker, Guinness, and Serengeti Lager, will remain the cornerstone of the business.
“This business is a high-quality, leading company with an unrivalled brand portfolio,” said Atsushi Katsuki, President and Group CEO of Asahi. “Together with its excellent management team, we will pursue sustainable growth and contribute to the development of local economies.”
Jane Karuku, MD and CEO of EABL, viewed the acquisition as a catalyst for the company’s next evolution. “Asahi brings significant knowledge and expertise in innovation and growing successful brands globally,” she noted, adding that the move aligns with EABL’s goal to become Africa’s “most celebrated beverage business.”
Despite the change in ownership, the transition is designed to be seamless:
- No jobs are expected to be impacted by the transaction.
- EABL’s seasoned management team and board will remain in place.
- Asahi will utilize EABL’s state-of-the-art production facilities to scale its regional ambitions.
The transaction now moves to the regulatory approval stage, with the handover expected to be completed within the calendar year 2026. Until then, Diageo will continue to work alongside Asahi to ensure a smooth transition of operations.