Diageo's sale of EABL stake to Asahi halted by High Court

The High Court has frozen the completion of Diageo’s sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group, pending legal challenges. The transaction is valued at approximately Sh388.2 billion (US$2.3 billion).

The Competition Authority of Kenya (CAK) has imposed several conditions on the deal. These include a requirement for EABL to set aside Sh15.5 billion to cover potential third-party claims and a mandate to reserve at least 20% of refrigerator space in bars and supermarkets for competing brands.

The regulatory approval also emphasizes protecting local suppliers and ensuring the merger does not compromise the sustainability of small businesses. While the deal represents a significant potential windfall for Kenya’s National Treasury through capital gains tax, it remains stalled due to ongoing antitrust scrutiny and legal disputes.