London, Jan 8, 2026, 09:35 GMT — Regular session
Diageo shares edged higher in early London trade on Thursday, a small bounce after a Kenyan court filing put fresh noise around the spirits maker’s $2.3 billion plan to sell East African Breweries to Japan’s Asahi. Diageo was up 0.8% at 1,589.5 pence by 0919 GMT, while the FTSE 100 eased about 0.2%. SharePrices
The move matters because Diageo has been leaning on asset sales to shore up cash flow and cut debt, and the Kenya challenge adds a new moving part just as investors are looking for cleaner lines on timing. A Kenyan beer distribution firm, Bia Tosha, has asked Kenya’s High Court to block the transaction until a separate competition dispute is resolved, and the court has set a hearing for Friday to give directions, Reuters reported. Reuters
Diageo agreed last month to sell its 65% stake in East African Breweries for $2.3 billion, a deal that values the Nairobi-listed brewer at about $4.8 billion and is due to complete in the second half of 2026. Interim CEO Nick Jhangiani said in December the sale would “accelerate” efforts to strengthen the balance sheet, as Diageo grapples with pressure in its key U.S. market and elevated debt. Reuters
The next hard date for investors sits closer to home. Diageo is scheduled to report interim results for the six months ended Dec. 31 on Feb. 25, according to its financial calendar. Diageo
Broker commentary has turned a little less one-way, but it is not a clean story. RBC Capital analyst James Edwardes Jones upgraded Diageo to “Outperform” with a 2,000 pence price target, saying the company “enjoys an enviable stable of brands across multiple price points,” and flagged lower working-capital needs — cash tied up in stock and unpaid bills — as a support for cash generation. TipRanks
Even with Thursday’s lift, Diageo is still trading bruised. The stock dropped 4.1% on Wednesday to close at 15.77 pounds, underperforming a weaker London market, and it sits about 39% below its 52-week high, MarketWatch data showed. MarketWatch
Technically, traders have been circling the lows. Diageo’s 52-week range runs from about 1,564 pence to 2,567.5 pence, and the stock’s daily range on Thursday was roughly 1,579 pence to 1,598 pence, according to Investing.com data. Investing
The risk case is straightforward: if the Kenyan litigation drags, it can complicate the deal timetable and keep investors focused on leverage rather than brand execution. Even without court delays, big transactions can get held up by approvals, and Diageo still has to convince the market that demand and pricing in key regions can stabilise.
