Diageo exits EABL: Inside CAK’s conditions for Asahi takeover
Kenya has cleared Diageo’s sale of its 65 per cent stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings, ending a major regulatory hurdle for the transaction. The Competition Authority of Kenya (CAK) approved the deal with conditions covering outstanding liabilities and access to retail cooler space for competing beverage brands. Diageo […]
Kenya's competition regulator has given the green light for Diageo to sell its 65% stake in East African Breweries Plc (EABL) to Japan's Asahi Holdings. The brewer announced the deal in December 2025, citing a strategy to withdraw from the African market. For $2.3 billion, Diageo is transferring its stake to Asahi as part of the planned exit.
The Competition Authority of Kenya has mandated EABL to keep adequate funds from the sale to cover any remaining financial obligations, as per a letter to the brewers' legal representatives. Additionally, EABL must allocate 20% of its cooler space in retail stores for other brands, according to Bloomberg News.
EABL has acknowledged the regulator's approval of the proposed transaction between Diageo PLC and Asahi Group Holdings, Ltd. The deal has faced hurdles in Kenya, including a legal challenge by distributor Bia Tosha, which was dismissed in April. This prompted EABL to request expedited hearings before Kenya's chief justice in June.
In August, Kenya's Business Daily reported that the regulator might have suggested EABL set aside around 15 billion Kenyan shillings ($116.01 million) as reserve funds prior to approving Diageo's stake sale.
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- Kenya clears Diageo’s sale of EABL stake to Asahi sabcnews.com
- Rivals get space in EABL fridges in Diageo stake sale deal nation.africa
