London, Jan 11, 2026, 08:08 GMT — The market has closed.
Diageo’s London-listed shares face uncertainty on Monday as a Kenyan court delays a hearing tied to its $2.3 billion asset sale. Kenya’s High Court moved the hearing to Jan. 20, aiming to block the deal. Judge Bahati Mwamuye ruled that while the parties may proceed with preliminary actions like seeking regulatory approvals, they cannot close the transaction before that date. Despite the delay, those involved still anticipate completing the deal in the second half of the year. The case was brought by Kenyan beer distributor Bia Tosha, linked to ongoing litigation dating back to 2016. East African Breweries dismissed any connection between the dispute and the sale, stating: “We welcome the court’s decision to allow the regulatory phases of this transaction to continue.” (Reuters)
Diageo aims to convert a major regional asset in Kenya into cash through the planned sale. The ongoing court proceedings won’t affect the headline price, but they could delay the deal — and when it comes to managing debt, timing is everything for the markets.
The timing matters now because the court set a firm deadline, and Diageo has tied the sale directly to its strategy for reducing debt and offsetting tariff-related risks along with slower demand in some areas. If the deal stalls, so does the balance sheet plan.
Diageo (DGE.L) closed Friday at 1,630 pence (16.30 pounds), gaining 1.75% after swinging between 1,606.5 and 1,643 pence during the session. The stock is hovering around 4% above its 52-week low of 1,564 pence and sits nearly 36% below its peak of 2,565 pence. Trading volume hit roughly 8.71 million shares, per Investing.
It’s not a results week, so attention shifts from numbers to headlines. Traders usually circle these court dates, trading cautiously around any unexpected developments.
Diageo, the company behind Johnnie Walker whisky and Guinness stout, has been focusing on selective disposals to sharpen its core spirits portfolio. The recent deal in Kenya stands out as the clearest catalyst on the radar.
The court’s position keeps the regulatory process moving but holds the power to close things in its hands for the moment. That’s enough to prevent any “deal done” relief, at least until the next session.
The risk is straightforward: should the case expand or an injunction come through, the sale could stall, forcing the company to lean more heavily on its internal cash flow to reduce debt. A prolonged legal battle would also reignite deal uncertainty just when it’s least welcome.
Diageo is set to release its interim results on Feb. 25, covering the half-year ending Dec. 31. Investors will focus on updates regarding cash flow, debt levels, and how quickly disposals are progressing. They’ll also watch to see if management maintains its current tone on tariffs and demand. (Diageo)
