Diageo, the world’s largest spirits maker, has agreed to sell its stake in East African Breweries Ltd. to Japan’s Asahi Group Holdings Ltd. for $2.3 billion.
Diageo, the world’s largest spirits maker, has agreed to sell its stake in East African Breweries Ltd. to Japan’s Asahi Group Holdings Ltd. for $2.3 billion, the maker of Johnnie Walker whisky and Guinness beer said on Wednesday.
The transaction includes Diageo’s 65% stake in East African Breweries as well as Diageo’s majority holding in UDVK, a Kenya-based spirits producer and importer.
The company said the sale is part of its ongoing strategy to divest non-core assets as it seeks to streamline operations and focus on growth.
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In recent years, Diageo has navigated a range of market dynamics, including tariff changes in its largest market, the United States, managing debt levels, and shifting consumption trends among younger consumers.
In January, the company clarified that it had no plans to sell Guinness or its stake in Moët Hennessy. As part of its efforts to drive growth, Diageo last month appointed former Tesco chief Dave Lewis as its new CEO.
Diageo’s changing portfolio in Africa
In Africa, the company has been gradually reshaping its portfolio. This move follows Diageo’s agreement last year to sell its 58% stake in Guinness Nigeria to Singapore-based Tolaram Group. Under that deal, Diageo retains ownership of the Guinness brand, which will continue to be licensed to Guinness Nigeria over the long term.
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The company has made several similar moves in recent years, including selling its stake in Guinness Cameroon to Castel Group in 2022 for £389 million, and selling Meta Abo Brewery in Ethiopia to Castel Group in the same year.
