London, Jan 10, 2026, 08:20 GMT — Market closed
- Kenya’s High Court postponed a case challenging Diageo’s $2.3 billion sale of EABL to Asahi until Jan. 20, but permitted regulatory processes to go ahead.
- Diageo shares ended the day up 1.75%, closing at 1,630 pence, but remain close to the lower end of their 52-week range.
- Investors are eyeing the court date alongside Diageo’s interim results on Feb. 25 for clues on its cash flow and debt levels.
Kenya’s High Court has pushed the hearing on a bid to block Diageo’s $2.3 billion sale of its local unit EABL to Japan’s Asahi Holdings to Jan. 20. Judge Bahati Mwamuye said the involved parties can proceed with preliminary moves, provided the deal isn’t finalized before that date. EABL responded, “We welcome the court’s decision to allow the regulatory phases of this transaction to continue.” The lawsuit was brought by Kenyan beer distributor Bia Tosha, tied to a dispute going back to 2016. Despite the hold-up, the deal parties still aim to close in the second half of the year. Reuters
Diageo shares (DGE.L) closed Friday up 1.75% at 1,630 pence, recovering from this week’s low of 1,564 pence. The day’s trading fluctuated between 1,606.5 and 1,643 pence. Over the past year, the stock has dropped 33.4%, hovering near the bottom of its 52-week range of 1,564 to 2,565 pence and reacting nervously to deal-related news.
Diageo revealed its deal with Asahi back in December, expecting net proceeds of $2.3 billion after taxes and costs. The transaction is set to cut leverage — measured as net debt to EBITDA — by about 0.25 times. Interim CEO Nik Jhangiani said the move “accelerates our commitment to strengthen our balance sheet.” Meanwhile, Asahi CEO Atsushi Katsuki described EABL as a “high-quality, leading company” in East Africa. Diageo also said it plans to forge long-term licensing agreements to keep producing and distributing Guinness and other brands in the region. www.diageo.com
The court delay comes as Diageo works to concentrate on its core spirits business while managing debt amid uneven demand and tariff uncertainty in the U.S., its largest market. Investors are watching closely to see if the legal challenge remains a brief procedural hiccup or morphs into a longer obstruction affecting cash flow and the planned exit from African beer.
The downside is obvious. Should the court enforce stricter limits or the case drag out, the disposal might be delayed, forcing Diageo to rely more heavily on other cost cuts, price adjustments, or asset sales to maintain its debt trajectory.
Technically, the stock is hovering near 1,600 pence again, with support at 1,564 pence if sellers push lower. A solid move above 1,643 pence could relieve some pressure, though the timeline around Kenya is expected to keep influencing the trading action.
Looking ahead, the Kenyan court will issue further guidance on the Asahi deal challenge on Jan. 20. After that, Diageo is set to release its interim results for the six months ending Dec. 31, 2025, on Feb. 25. Investors will be watching closely for management’s take on cash flow, debt levels, and brand investments to gauge the company’s next move.
