Asahi to Acquire Diageo's East African Business for 4.4 Trillion Won

On December 17, Japanese alcoholic beverage and soft drink company Asahi Group Holdings announced that it will acquire the East African business of Diageo, a UK-based alcoholic beverage company.

The company flag is fluttering in front of the Asahi Group headquarters in Tokyo, Japan. Photo by AFP Yonhap News Agency

According to the Nihon Keizai Shimbun (Nikkei) on the same day, the acquisition is valued at approximately 465.4 billion yen (about 4.4 trillion won). Through this acquisition, Asahi will enter the beer and whisky businesses in Kenya, Uganda, and Tanzania. This marks Asahi's first entry into the African market.

Asahi will acquire 100% of the shares in Diageo Kenya and will indirectly hold a 65% stake in East African Breweries Limited (EABL), which operates alcoholic beverage businesses in three East African countries. This company handles leading products in the Kenyan beer market as well as vodka, gin, and whisky.

Nikkei explained that while global demand for alcoholic beverages is shrinking due to growing health concerns, beer demand in Africa remains robust.

Atsushi Katsuki, President of Asahi, stated, "We will pursue sustainable growth and long-term corporate value enhancement by leveraging the region's outstanding brand portfolio and marketing capabilities."