Diageo is set to exit East Africa after agreeing to sell its entire 65% stake in East African Breweries (EABL) for $2.3 billion. The buyer, Japan’s beverage group Asahi, will take control if the deal receives regulatory approval. This move concludes a strategic review of Diageo’s East African business and marks its second major divestment on the continent, following last year’s sale of its Guinness Nigeria stake. The British drinks giant is pursuing a more “flexible and asset-light” model for its beer operations globally. Industry analysts suggest potential regulatory headwinds, such as Kenya’s possible move to raise the legal drinking age, may have influenced the decision to exit the Nairobi-based brewer.
SEMAFOR