In a major milestone for one of the continent’s biggest corporate transactions, capital markets regulators in Kenya, Uganda, and Tanzania have officially approved Asahi Group Holdings’ acquisition of Diageo’s majority stake in East African Breweries PLC (EABL).
Crucially, regulators have granted Asahi an exemption from triggering a mandatory takeover offer. This decision guarantees that EABL will remain listed on regional stock exchanges, protecting the status of minority investors.
Because EABL is listed on the Nairobi Securities Exchange (NSE) and cross-listed on both the Dar es Salaam Stock Exchange (DSE) and the Uganda Securities Exchange (USE), Asahi was legally required to navigate a complex, multi-jurisdictional regulatory landscape.
Applications for the exemptions were filed by Asahi’s global and local legal and financial advisory team, consisting of A&O Shearman, ENS, Nomura, and Absa. The approvals were concurrently issued by:
- The Capital Markets Authority of Kenya (CMA)
- The Capital Markets and Securities Authority of Tanzania (CMSA)
- The Capital Markets Authority of Uganda (CMA-U)
The transaction involves Asahi acquiring Diageo’s entire 65% shareholding in EABL, alongside its 53.7% stake in UDV Kenya Limited, the region’s dominant spirits business. Valued at approximately USD 2.3 billion (Ksh. 297 billion), the deal serves as Asahi’s cornerstone entry strategy into Africa’s rapidly expanding alcoholic beverages market.
From the onset, Asahi has maintained that it intends to protect EABL’s distinct regional identity. EABL will continue to manufacture, sell, and distribute its own legacy brands, such as Tusker and Serengeti, while continuing to produce and distribute portfolio brands licensed by Diageo.
With the capital markets approvals successfully secured, the focus now shifts to East Africa’s competition and antitrust regulators.
The deal must now be vetted by the Competition Authority of Kenya (CAK), the Fair Competition Commission of Tanzania (FCC), and the Ministry of Trade, Industry and Cooperatives in Uganda. These bodies will review the transaction to ensure it complies with regional antitrust laws and does not create unfair market dominance or negatively impact consumer welfare in the beverage sector.