Home / Business and Economy / Kenya Approves Asahi's Diageo Acquisition with Major Caveats
Kenya Approves Asahi's Diageo Acquisition with Major Caveats
11 Sep
Summary
- Asahi Group will acquire sole control of Diageo's Kenyan assets.
- The deal requires 20% of retail refrigeration space for non-Asahi products.
- Diageo is exiting the African market as part of its strategy.
Kenya's competition authority has granted approval for Japan's Asahi Group Holdings to gain sole control of Diageo's assets within the country. This development follows Diageo's December 2025 announcement to sell its 65% stake in East African Breweries Limited (EABL) to Asahi for $2.3 billion, a move signaling Diageo's exit from the African market.
The approval is conditional. The merged entity will be required to allocate a minimum of 20% of the refrigeration space in retail outlets to products not associated with EABL or Asahi. This condition aims to ensure market fairness and prevent monopolistic practices.
Furthermore, the competition authority stipulated that EABL must set aside sufficient funds from the transaction to cover outstanding liabilities. The merger must also ensure the continuity of supplies and services, alongside supporting the sustainability and growth of small businesses.
