A Kenyan firm blocks EABL sale to Japanese giant Asahi Holdings by filing a lawsuit at the High Court. The company wants to stop Diageo’s $2.3 billion divestment of East African Breweries Limited (EABL).
According to the firm’s lawyer, the suit argues that the deal cannot move forward due to unresolved legal disputes. Specifically, these cases involve the distributor’s commercial relationship with EABL.
As a result, the plaintiff seeks a temporary injunction. It hopes the court will pause the sale until judges resolve the underlying litigation.
Now, this legal move adds uncertainty to one of East Africa’s biggest beverage deals. Diageo agreed in late 2025 to sell EABL to Asahi as part of its global exit from non-core markets.
Meanwhile, Asahi—already a minority EABL shareholder—plans to use full ownership to grow across Africa. However, the Kenyan firm fears Diageo will become less accountable once it hands over control.
Therefore, the distributor argues that finalizing the sale could harm its legal rights. The company wants to ensure it can enforce any future court rulings against the right party.
Diageo has not responded to calls or emails about the lawsuit. Asahi also declined to comment immediately.
While such injunctions are rare, they can significantly delay big transactions. If the court grants the order, the $2.3 billion deal may stall for months.
This case shows how local partners can influence multinational asset sales. Even when global firms agree on terms, unresolved local disputes may upend the process.
For now, the Kenyan firm blocks EABL sale in a high-stakes legal effort. The High Court will likely hear the injunction request within weeks.
