Asahi Group Holdings is set to acquire Diageo's East African operations, including subsidiaries in Kenya and Uganda, to expand its market presence in a rapidly growing beverage industry.

Target Company Information

Asahi Group Holdings, a leading beverage company, has entered into a strategic agreement to acquire the East African operations of the UK-based alcohol beverage giant Diageo plc. This acquisition includes the subsidiaries Diageo Kenya Limited and UDV (Kenya) Limited, located in Nairobi. The deal aims to enhance Asahi's global brand presence and expand its operational footprint in East Africa, encompassing Kenya, Uganda, and Tanzania.

The target operations generated approximately ¥154 billion in net sales, boasting an operating profit of around ¥30.2 billion and net assets amounting to ¥50.8 billion for the fiscal year ending June 2025. The acquisition consideration comprises about ¥365.2 billion for Diageo Kenya and approximately ¥100.2 billion for UDV (Kenya), with the expected completion of the transaction projected for the second half of 2026.

Industry Overview in East Africa

East Africa represents a burgeoning market for the beverage industry, characterized by increasing urbanization, rising disposable incomes, and evolving consumer preferences. The beverage sector, particularly beer and spirits, is experi