Diageo Plc (LSE:DGE) has reached an agreement to sell its controlling interest in East African Breweries Ltd. to Japan’s Asahi Group Holdings Ltd. for $2.3 billion, as the drinks group continues to streamline its portfolio and focus on core growth areas.
The transaction covers Diageo’s 65% holding in East African Breweries as well as its majority interest in UDVK, a Kenyan-based spirits producer and importer. East African Breweries already owns the remaining share of UDVK and retains operational control of the business.
The sale forms part of Diageo’s broader strategy to scale back its exposure to African markets. In recent years, the company has exited several regional assets, including the full disposal of Seychelles Breweries Ltd. and its Nigerian operations.
Earlier this year, Diageo completed the sale of its 80% stake in Guinness Ghana Breweries Ltd. to Castel Group. The group has also divested Guinness Cameroon SA and Ethiopia’s Meta Abo Brewery, further reshaping its African footprint.
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