EABL, Diageo Transaction Holds Steady As CAK Imposes New Remedies

A recent transaction has reportedly raised significant concerns at the Competition Authority of Kenya (CAK). Diageo plc sold its 65% controlling shareholding in East African Breweries plc (EABL) to Asahi Group Holdings, Ltd. (Asahi). The CAK reportedly proposed remedies which have raised questions about the scope of the Authority’s powers. They have also raised questions about the types of conditions the CAK may impose in merger control review.

The proposed transaction was announced in December 2025. It concerns the acquisition of 65% in EABL by Asahi from Diageo for a consideration of approximately USD 2.3 billion. For Asahi, a major Japanese beverage group, the transaction is a significant strategic step to into the East African market. However, the proposed transaction has hit another regulatory obstacle in Kenya. The CAK has reportedly informed the National Assembly’s Finance and National Planning Committee that clearance of the proposed transaction would be subject to two