Asahi Group Holdings is acquiring Diageo Kenya Limited, gaining a 65% stake in East African Breweries and expanding its presence in the East African beverage market.

Target Overview

A&O Shearman is advising Asahi Group Holdings on the strategic acquisition of Diageo Kenya Limited (DKL). This acquisition will enable Asahi to indirectly acquire a 65% stake in East African Breweries (EABL) and a 53.68% interest in UDV (Kenya) Limited (UDVK). With an estimated equity value of USD 2.354 billion for DKL and USD 646 million for the shares in UDVK, this deal represents a significant investment in the East African beverage sector.

EABL, a prominent player in the East African market, operates within Kenya, Uganda, and Tanzania and boasts a diverse portfolio that includes well-known beer brands such as Senator, Tusker, and Serengeti, in addition to spirits like Chrome and Kenya Cane. The transaction also involves long-term licensing agreements between Diageo and EABL to continue distributing Diageo’s global brands, including Guinness, Johnnie Walker, and Smirnoff Ice in the region.

Industry Overview

The beverage industry in East Africa is witnessing notable growth, driven by increasing consumer demand for both alcoholic and non-alcoholic beverages. The region's favorable demographics, coupled