LONDON, Jan 9, 2026, 10:46 GMT — Regular session
- Diageo shares rose about 2% in London after a Kenyan court pushed a hearing on a bid to halt its EABL sale to Jan. 20
- The $2.3 billion deal to sell Diageo’s 65% stake in East African Breweries to Asahi is facing a legal challenge from local distributor Bia Tosha
- Investors are watching the Jan. 20 court date and Diageo’s Feb. 25 interim results for updates on cash, debt and demand
Diageo (DGE.L) shares rose on Friday after a Kenyan court postponed a hearing on a bid to block the drinks maker’s $2.3 billion sale of East African Breweries to Japan’s Asahi Holdings. The stock was up about 2% at 1,634 pence in mid-morning trade.
The case lands at a touchy moment for Diageo, which has been leaning on asset sales to bring in cash and curb debt. A delay in one of its bigger disposals would complicate that timetable.
Investors have also been watching whether spirits demand is steadying, particularly in the United States. That puts more weight on anything that shifts the company’s cash inflow, even if it is far from Diageo’s core markets.
Kenya’s High Court moved the hearing to Jan. 20. Judge Bahati Mwamuye said the parties could take preliminary steps such as regulatory approvals — sign-offs from watchdogs — but could not finalise the transaction before that date, and deal parties still expect completion in the second half of this year.
The challenge was filed this week by beer distributor Bia Tosha over litigation dating back to 2016. East African Breweries, which is listed in Nairobi, said the case had no factual or legal link to the transaction and added that it and its Kenyan unit could defend any litigation; the sale values EABL at $4.8 billion and would leave Diageo with no direct stake in the African beer business.
Diageo was last at 1,633.9 pence, up 1.99% on the day, after closing at 1,602.0 pence on Thursday. The stock fell 4.08% on Wednesday and hit an intraday low of 1,564.0 pence, near the bottom of its 52-week range.
The broader FTSE 100 was up about 0.4% on the session.
But the legal fight is not over. A tougher ruling, or a longer timetable, could still slow the deal and push out cash proceeds at a time when investors want clearer signs on debt reduction and sales momentum.
The next court hearing is due Jan. 20. Diageo is scheduled to report interim results on Feb. 25, when investors will look for updates on U.S. demand, tariffs and cash generation.
