Diageo to sell majority stake in East African beer business for £1.7bn
The Guinness owner is seeking to sell off ‘non-core’ parts of the business in order to boost its finances.
Diageo has struck a 2.3 billion dollar (£1.7 billion) deal to sell its majority stake in an East African beer business to Japanese drinks giant Asahi.
The deal is the latest move by the Guinness owner to sell off “non-core” parts of the business in order to boost its finances.
The FTSE 100 firm told shareholders on Wednesday that it will sell its 65% shareholding in East African Breweries (EABL) to Asahi Group, in a move which also includes its stake in Kenyan spirits business UDVK.
Diageo committed to a long-term licensing agreement for the business as part of the deal, continuing the production and distribution of Guinness in the region.
Bosses said the sale, which is subject to regulatory approvals, is expected to complete in the second half of 2026.
It is part of a strategy of divestments which saw Diageo sell off its stake in Guinness Ghana Breweries earlier this year.
The company announced last month that former Tesco boss Dave Lewis will take over as chief executive early next year in a bid to help turn around its fortunes.
Nik Jhangiani, interim chief executive of 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 chief executive of Asahi, said: “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.”
Shares in Diageo rose by 1.6% in early trading.
