Asahi Group Holdings is set to acquire a 65% stake in East African Breweries through transactions with Diageo plc subsidiaries, significantly enhancing its market presence in the East African beverage industry.

Target Information

Asahi Group Holdings has announced its intention to acquire a significant stake in East African Breweries Limited through a series of transactions involving Diageo plc subsidiaries. The acquisition encompasses 100% of the shares of Diageo Kenya Limited for approximately 365.2 billion yen and 53.68% of UDV Kenya Limited for around 100.2 billion yen. Through these agreements, Asahi will indirectly secure a 65% ownership in East African Breweries, a prominent entity in the beverage sector across Kenya, Uganda, and Tanzania, specializing in beer, spirits, and ready-to-drink products.

East African Breweries is a well-established company listed on various securities exchanges, including the Nairobi Securities Exchange, and it is cross-listed in Uganda and Tanzania. With 35% of its shares held by public shareholders, the company remains an important player in the local beverage market, known for its diverse product offerings and strong brand recognition.

Industry Overview

The beverage industry in East Africa, particularly in Kenya, has been on an upward trend, driven by changing consumer preferences and a growing population. The rise in disposable incomes, coupled with a youthful demographic eager for diverse b