Diageo Stock Up As Kenya Approves Asahi Deal

Diageo shares experienced an increase in early London trading on Monday, January 12, 2026. This movement followed a Kenyan High Court decision regarding the planned sale of its East African beer unit.

Kenyan Court Ruling on EABL Sale

A Kenyan High Court has permitted regulatory review processes to proceed concerning Diageo’s planned sale of its East African Breweries Limited (EABL) stake to Asahi. The court, however, has issued an 11-day preservation order, pausing the final stages of the deal until January 20. The case originated from an application by Bia Tosha Distributors and is scheduled for review on that date. EABL maintains that the dispute does not affect its parent company’s shareholding structure.

Financial Implications and Deal Details

The sale, initially announced in December, involves Diageo offloading a 65% stake in EABL and a share in a Kenyan spirits firm to Asahi. This transaction is projected to generate approximately $2.3 billion in net proceeds after taxes and expenses. Diageo’s interim CEO, Nik Jhangiani, previously stated the deal would deliver significant value to shareholders.

Market Reaction and Future Outlook

Diageo shares rose roughly 1.4% to near 1,653 pence, following a close at 1,630 pence. Investors are currently assessing the potential impact of the legal dispute on the deal’s timeline, particularly concerning debt repayment and cash payouts. The court’s next hearing could introduce stricter limitations, or the dispute could prolong the approval process, which is already complicated by regulatory approvals and paperwork across multiple markets.

Upcoming Interim Results

Diageo is scheduled to release its interim results for the six months ending December 31 on February 25. Investors will be closely monitoring the report for updated guidance and information regarding the EABL sale process.