Published by Global Banking & Finance Review®
Posted on January 7, 2026
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleDiageo's $2.3B sale of EABL to Asahi is challenged by Bia Tosha in Kenya's High Court over pending litigation.
NAIROBI, Jan 7 (Reuters) - A Kenyan beer distribution firm has filed a case at Kenya's High Court seeking to block Diageo's $2.3 billion sale of its local subsidiary EABL to Japan's Asahi Holdings over pending litigation, a lawyer for the challenger said on Wednesday.
Diageo, the world's biggest spirits group, said last month it had agreed a deal with the Japanese brewer for a sale of its 65% stake in EABL, as it responds to U.S. tariffs and shifting consumer patterns.
But the deal faces a challenge by Kenyan distributor Bia Tosha, which has asked the court to stop it until its litigation against Diageo and EABL, over a competition dispute, is determined and settled.
Kenya's High Court has certified the case as urgent and has set a hearing date for Friday, when it will give directions, Kenneth Kiplagat, Bia Tosha's lawyer, told Reuters.
London-listed Diageo did not immediately respond to a request for comment. EABL, which is listed on the Nairobi bourse, was not immediately available for comment.
Diageo's shares slipped 1.6%, while EABL was 0.5% lower.
(Reporting by Duncan Miriri, additional reporting by Emma Rumney, editing by Karin Strohecker and Alexander Smith)
A subsidiary is a company that is completely or partially owned by another company, known as the parent company. The parent company controls the subsidiary's operations and financial decisions.
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