East African Breweries PLC (EABL) has announced that Diageo has agreed to sell all its shares in EABL and its ownership in the spirits company UDV (Kenya) Limited to Japan's Asahi Group.
This move makes Asahi the first major company from Japan to officially enter and invest significantly in the beverage industry across Africa.
Once this acquisition is finalized, Asahi will become the primary owner of EABL and will oversee its operations in Kenya, Uganda, and Tanzania.
The company has said that it will continue to develop local brands that consumers are familiar with, while also introducing some of its globally recognized brands to East African consumers.
With this agreement, Diageo expects to receive approximately $2.3 billion in revenue after taxes and other expenses, equivalent to 5.69 trillion Tanzanian shillings. The total value of EABL in this deal is estimated to reach $4.8 billion, which is about 11.87 trillion Tanzanian shillings.
This acquisition reflects strong investor confidence in EABL's growth and the future of the East African market, an area that continues to experience rapid economic and population growth. Under the new ownership, EABL is expected to continue thriving and expanding its business further.
EABL has indicated that it is entering a new chapter of growth alongside Asahi, a company that will benefit from EABL's modern manufacturing facilities, its leadership experience, strong brand portfolio, excellent distribution network, and good relationships with employees, partners, and customers.
Commenting on this development, EABL's CEO, Ms. Jane Karuku, said that this acquisition presents a significant opportunity for the company. She noted that the new owner brings extensive international experience in innovation and brand development, which will help EABL achieve its goal of becoming the most respected "beverage company " in Africa.
The Interim CEO of Diageo, Mr. Nik Jhangiani, expressed that Diageo will takes pride in the journey and achievements of EABL in Kenya, Uganda, and Tanzania.
He added that Diageo will continue to collaborate with Asahi by utilizing some of its brands in the East African region, while this deal will assist Diageo in strengthening its financial position.
Meanwhile, the CEO of Asahi Group, Mr. Atsushi Katsuki, said that EABL is a " robust company " with a significant market presence, boasting strong brands, modern factories, and an experienced team.
He mentioned that Asahi aims to grow the business sustainably and contribute to the economic development of the involved countries.
This transaction still requires approval from government authorities and is expected to be finalized by 2026. EABL has emphasized that there will be no changes to its daily operations and no employees will lose their jobs as a result of these changes.During the transition period, Diageo will continue to work with Asahi to ensure that the changes occur smoothly and operations proceed without disruption.