London, Jan 12, 2026, 08:20 GMT — Regular session
- Diageo shares climbed in early London trading after a Kenyan court allowed regulatory reviews to proceed on its planned EABL sale to Asahi.
- The court also paused the last stages of the deal, with the matter set to return on Jan. 20.
- Investors await clearer timing as Diageo prepares to release interim results in late February.
Diageo shares ticked higher Monday following a Kenyan High Court ruling that permitted regulatory approval procedures to proceed for the spirits giant’s planned sale of its East African beer unit to Japan’s Asahi. However, the court put a hold on the deal’s final steps.
This deal is key because it aims to unlock cash and slash leverage — essentially trimming net debt against earnings — just as investors push the Johnnie Walker and Guinness producer to strengthen its balance sheet.
Diageo climbed roughly 1.4% to near 1,653 pence, following a close at 1,630 pence, according to data.
In Nairobi, the High Court greenlit the statutory and regulatory processes linked to the Diageo–Asahi deal. However, it slapped an 11-day “preservation order” until Jan. 20, blocking just the final steps, according to Capital FM. Capital FM
The case originated from an application by Bia Tosha Distributors and is set for mention on Jan. 20 to determine next steps, the report noted. EABL has insisted the dispute does not involve the shareholding structure of its parent company.
In December, Diageo struck a deal to offload its 65% stake in East African Breweries along with its share in a Kenyan spirits firm to Asahi. The move is set to bring in about $2.3 billion in net proceeds after taxes and expenses. “This transaction delivers significant value for Diageo shareholders,” said interim CEO Nik Jhangiani at the time. www.diageo.com
London investors are now focused on whether the ongoing legal dispute will delay approvals or postpone completion—and how that might affect the speed of debt repayment and cash payouts.
The court might impose stricter limits at the next hearing, or the dispute could drag out, complicating a timeline already stretched by numerous regulatory approvals and deal paperwork spanning multiple markets.
Diageo is set to report its interim results for the six months ending Dec. 31 on Feb. 25. Investors will be watching closely for updated guidance and insights on the EABL sale process.
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