A Kenyan beer distributor has filed a case at the High Court to block Diageo’s $2.3 billion sale of EABL. The challenge comes amid pending litigation over a competition dispute, with the firm seeking to halt the transaction until resolved.
Diageo, the world’s largest spirits group, announced last month it agreed to sell its 65% stake in EABL to Asahi Holdings. The sale responds to shifting consumer trends and U.S. tariffs, which have pressured Diageo to restructure its African operations.
Bia Tosha, the Kenyan distributor, argues the deal cannot proceed until its ongoing dispute with Diageo and EABL is settled. Kenya’s High Court has classified the case as urgent, scheduling a hearing on Friday to issue procedural directions.
Lawyer Kenneth Kiplagat, representing Bia Tosha, confirmed the court’s fast-tracked timetable to Reuters on Wednesday morning. Shares of London-listed Diageo fell 1.6%, while EABL, listed on the Nairobi bourse, dropped 0.5% following the news.
Diageo did not immediately comment, and EABL was also unavailable for comment when contacted by Reuters reporters. The case adds complexity to a major African business transaction, highlighting local legal challenges facing global corporate sales.
