Diageo has struck a deal to sell its majority stake in East African Breweries (EABL) to fellow drinks giant Asahi Group for $2.3 billion. 

The news follows an announcement from Diageo that it would be selling off “non-core” parts of the business in a move to boost its finances. 

Under the agreement, Diageo is set to sell its 65% shareholding in EABL alongside its shareholding in the Kenyan spirits business UDVK. 

At the same time, Diageo said it has entered into a long-term licensing agreement with EABL to secure the continued production and distribution of Guinness, local spirits and RTD brands, as well as the distribution of Diageo’s international spirits. 

For Asahi, this acquisition represents the first time the Japanese brewing business has made an investment of this size in an African alcoholic beverage business. 

Nik Jhangiani, interim CEO at Diageo, said: “We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.” 

Atsushi Katsuki, president and group CEO, director and representative executive officer at Asahi, added: “This business is a high-quality, leading company in Kenya, Uganda and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares.  

“Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.” 

Diageo commented that subject to regulatory approvals, completion is expected in the second half of the calendar year 2026.