Kenya, Tanzania & Uganda: Asahi secures regulatory approval to acquire majority stake in East African Breweries

Japanese beverage company Asahi Group Holdings has secured regulatory approval to proceed with its acquisition of a majority stake in East African Breweries PLC without making a mandatory takeover offer to minority shareholders in Kenya, Tanzania and Uganda.

The approvals were granted after Asahi announced plans to acquire 100 percent of the shares in Diageo Kenya Limited from Diageo Holdings Netherlands B.V..

The transaction will indirectly give Asahi control of approximately 65 percent of EABL’s issued share capital.

According to the company, exemptions were issued by Kenya’s Capital Markets Authority, Tanzania’s Capital Markets and Securities Authority and Uganda’s Capital Markets Authority under their respective takeover and mergers regulations.

EABL is listed on the Nairobi Securities Exchange and cross-listed on the Dar es Salaam Stock Exchange and the Uganda Securities Exchange, making the approvals critical for the transaction to proceed across the three regional markets.

Despite the regulatory clearance, Asahi said completion of the deal remains subject to competition approvals from the Competition Authority of Kenya, Tanzania’s Fair Competition Commission and Uganda’s Ministry of Trade, Industry and Cooperatives.

The acquisition was first announced publicly on December 18, 2025, marking Asahi’s planned entry into Africa’s alcoholic beverages market for the first time.

The latest development follows a legal victory for the transaction in Kenya after the High Court dismissed a petition filed by logistics company Bia Tosha, which had sought to halt the acquisition over unresolved distribution disputes. Justice Bahati Mwamuye ruled against the petition, allowing the process to continue.

The acquisition forms part of a broader restructuring strategy by Diageo as it seeks to streamline operations and reduce debt exposure in emerging markets.

However, Diageo will retain a commercial presence in East Africa through long-term licensing agreements that will allow EABL to continue producing and distributing key global brands including Guinness, Johnnie Walker and Smirnoff Ice across the region.

For Asahi, which reported annual revenue of approximately US$19 billion, the transaction represents a strategic expansion beyond its core markets in Japan, East Asia, Europe and the Asia-Pacific region.

15 May, 2026