Kenya clears Diageo's sale of EABL stake to Asahi

Sept 10 (Reuters) - Kenya's competition regulator has approved Diageo's (DGE.L), opens new tab sale of its 65% stake in East African Breweries Plc (EABL.NR), opens new tab to Japan's Asahi Holdings (2502.T), opens new tab, the brewer said on Thursday.

The London-listed company announced in December 2025 that it was selling its stake in EABL to Asahi for $2.3 billion, as part of its strategy to exit the African market.

The Competition ⁠Authority of Kenya directed EABL to "reserve sufficient funds from the transaction consideration to meet any outstanding liabilities," Bloomberg News reported earlier, citing a letter sent to lawyers representing the brewers.

The regulator also required EABL to reserve 20% of its cooler space in retail outlets for competitors' drinks, the report said.

"EABL notes the approval by the Competition Authority of Kenya regarding the proposed transaction ⁠between Diageo PLC and Asahi Group Holdings, Ltd," East African Breweries said in a statement to Reuters.

Diageo, Asahi and Kenya's competition authority did not immediately respond to Reuters requests for comment.

The deal has faced ⁠several challenges in Kenya, including a suit by distributor Bia Tosha that was dismissed in April, prompting EABL to ask Kenya's chief justice in ⁠June to speed up related hearings.

Kenya's Business Daily newspaper reported in August that the regulator had proposed EABL set aside as much ⁠as 15 billion Kenyan shillings ($116.01 million) in reserve funds before approving Diageo's stake sale.

($1 = 129.3000 Kenyan shillings)

Reporting by Unnamalai L in Bengaluru and Duncan Miriri; Editing by Vijay Kishore

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