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Kenyan Court Challenge Targets Diageo’s $2.3 Billion EABL Sale to Asahi

An urgent High Court case in Nairobi threatens to slow regulatory clearance, risking the planned H2 2026 closing.

Overview

  • Bia Tosha filed a High Court suit seeking to halt the transfer of Diageo’s 65% stake in East African Breweries to Asahi until its competition dispute is resolved.
  • Kenya’s High Court certified the matter as urgent and set a Friday hearing to issue directions on the request to block the transaction.
  • Diageo and EABL did not immediately comment on the case as investors weighed potential timing risks to approvals and closing.
  • Diageo announced the agreement in December with plans to retain brand presence through licensing arrangements even as ownership changes.
  • Shares in Diageo and EABL edged lower following reports of the legal challenge, reflecting concern over possible delays.