A Kenyan beer distributor has moved to block Diageo’s planned $2.3 billion sale of East African Breweries Ltd (EABL) to Japan’s Asahi Holdings, filing a case at Kenya’s High Court over pending litigation.
Diageo, the world’s largest spirits group, announced last month it had agreed to sell its 65% stake in EABL to Asahi as part of a global strategy to navigate U.S. tariffs and shifting consumer trends.
The deal faces opposition from Bia Tosha Distributors, which argues the transaction should not proceed until its ongoing competition dispute with Diageo and EABL is resolved.
The High Court has certified the case as urgent and scheduled a hearing for Friday to give directions, according to Bia Tosha’s lawyer, Kenneth Kiplagat.
EABL, which trades on the Nairobi Securities Exchange, issued a statement distancing the Asahi deal from the litigation:
“The matters in court relate to a long-standing dispute between Bia Tosha and Kenya Breweries Ltd (KBL) regarding distribution territories in Kenya and have absolutely no factual or legal linkage to the Diageo-Asahi transaction. This application is merely the latest iteration of an unsuccessful 10-year campaign by a former employee and former distributor now a serial litigant to destabilize and damage EABL’s business operations. All claims made are devoid of truth.”
EABL added that, regardless of the change in majority shareholder, both EABL and KBL remain independent and capable of defending themselves in litigation, stressing that any suggestion otherwise undermines Kenya’s attractiveness to foreign investors.
