CAK Approves Asahi’s EABL Takeover Months After Court Battles

Competition Authority of Kenya (CAK) has approved the proposed acquisition of a 65 per cent stake in East African Breweries Plc (EABL) by Japan’s Asahi Group Holdings.

The approval brings Asahi closer to taking control of one of East Africa’s leading beverage companies after Diageo Plc agreed to sell its controlling interest in the brewer.

EABL acknowledged the regulator’s decision, which comes after months of regulatory and legal scrutiny surrounding the proposed transaction.

CAK Imposes Conditions on Asahi-EABL Deal

As part of the approval, CAK has directed that sufficient funds be set aside from the transaction proceeds to cover any outstanding liabilities.

The regulator has also required EABL to reserve 20% of its refrigerator space in retail outlets for competing beverage brands.

According to the Authority, the conditions are aimed at addressing potential liabilities arising from the transaction while ensuring competing beverage manufacturers continue to have access to retail outlets.

Meanwhile, the proposed transaction was announced by Diageo on December 17, 2025. Under the agreement, Diageo will transfer its entire stake in Diageo Kenya Limited to Asahi where the company will hold a 65% stake in EABL.

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

Reports state that Diageo expects to receive approximately $2.3 billion (Ksh297.6 billion) ,in net proceeds from the transaction after taxes and fees.

The sale values EABL at an estimated enterprise value of about $4.8 billion which is approximately Ksh621 billion.

Asahi Targets Growth Through Acquisition

The acquisition is expected to strengthen Asahi’s presence in the East African beverage industry.

EABL operates mainly in Kenya, Uganda and Tanzania and has a portfolio that includes popular brands such as Tusker, Serengeti Lager and Kenya Cane.

According to reports, Asahi sees the brewer as a platform for expanding its presence in the region by using EABL’s established brands, production capabilities and distribution network.

For the financial year ended June 2025, EABL reported $996 million in net revenue, $258 million in EBITDA and $94 million in net profit.

Diageo has described the sale as part of its strategy to reduce its debt since it expects the transaction to reduce its debt ratio by approximately 0.25 times.

For Asahi, the deal represents an opportunity to expand beyond its existing markets and strengthen its position in Africa through EABL’s established operations.

Asahi Plans to Retain EABL Listings and Brands

Despite CAK’s approval, the transaction has not yet been fully completed.

The proposed sale has faced several legal challenges in Kenya, including a case filed by Bia Tosha Distributors seeking to stop the transaction.

Also Read: Asahi Steps In as Diageo Sells EABL Africa Stake

The High Court rejected the application in April 2026 . A separate case involving a minority shareholder subsequently resulted in the existing EABL ownership structure being maintained as the legal proceedings continued.

In early September, the High Court allowed CAK to proceed with its review while an appeal before the Capital Markets Tribunal and another legal proceeding remained ongoing.

Asahi has indicated that it intends to keep EABL listed on the stock exchanges of Kenya, Uganda and Tanzania after completion of the transaction.

The agreement also provides for the continued licensed production or distribution of some of Diageo’s international brands, including Guinness, Smirnoff and Captain Morgan.

Meanwhile, EABL’s local brands, including Tusker and Kenya Cane, are expected to remain part of the company’s portfolio.

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EABL Headquarters in Nairobi Kenya. PHOTO/ EABL