EABL Takeover Deal Gets Major Boost as Court Rejects Bid to Block Sale

The High Court has dismissed an application seeking to stop the proposed acquisition of a majority stake in East African Breweries PLC (EABL) by Japan’s Asahi Group Holdings, paving the way for the transaction to proceed pending final regulatory approval.

In a ruling delivered on June 17, Justice Gregory Mutai declined to grant conservatory orders sought by JILK Construction Company Limited and other applicants aimed at stopping the transaction between Diageo PLC and Asahi.

The court found that JILK’s claims could still be addressed through legal processes even if the share sale proceeds, and therefore did not justify suspending a transaction of significant economic importance.

Justice Mutai ruled that there was no evidence showing that Diageo would become unreachable after the transaction is completed.

The judge noted that EABL and its subsidiary, Kenya Breweries Limited (KBL), would continue operating and remain subject to Kenyan laws and regulations.

He also observed that Asahi, if it becomes the majority shareholder, would equally be bound by the country’s legal and regulatory framework.

The court further agreed with findings made in an earlier case involving distributor Bia Tosha, which determined that there was no sufficient link between historical commercial disputes and the proposed share transaction.

EABL Welcomes Court Decision

In a statement issued after the ruling, EABL welcomed the court’s decision and confirmed its commitment to respecting the judicial process.

“EABL has at all times respected the Court process. We have defended, and will continue to defend, these matters through lawful channels,” the company said.

The brewer also noted that the court had acknowledged the wider public interest implications of the transaction.

“EABL is encouraged that the Court reiterated the significant public interest and public finance implications of the transaction, as EABL remains a major contributor to Kenya’s economy, and a leading taxpayer and employer,” the statement added.

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Long-Running Dispute With Contractor

JILK Construction has been involved in a dispute with KBL since 2019 over payment claims related to construction work at Kisumu Brewery.

The matter was initially referred to arbitration before KBL challenged the process, alleging that it had uncovered irregularities, including alleged collusion between the arbitrator and JILK.

According to KBL, the alleged irregularities resulted in the amount under dispute increasing from Ksh 163 million to Ksh 2.4 billion.

The High Court also noted that JILK does not claim ownership of the EABL shares being sold or entitlement to the proceeds from the transaction.

Also Read: Stanbic Uganda Names Former EABL and Airtel Executive Mark Ocitti Ongom as CEO

Regulatory Approval Remains

The Diageo-Asahi transaction was announced in December 2025 and has already received full and unconditional approvals in Uganda and Tanzania.

According to EABL, the only remaining approval required is merger clearance from the Competition Authority of Kenya.

The company said the latest court ruling reinforces the view that unrelated historical disputes should not be used to delay transactions that carry significant public and economic benefits.

“EABL remains focused on delivering long-term value for shareholders and supporting the many people and sectors connected to our business across East Africa,” the company said.

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EABL Takeover Deal Gets Major Boost as Court Rejects Bid to Block Sale
PHOTO/EABL