A beer distributor in Kenya has asked a domestic court to intervene in the planned sale of Diageo’s majority stake in East African Breweries to Asahi Group.
Earlier this week, Bia Tosha, a former distributor of East African Breweries (EAB) predecessor Kenya Breweries Limited, applied for an ‘ex parte’ injunction, arguing that the change in majority ownership of EAB could prejudice ongoing litigation between the parties. The application was rejected by the presiding judge and Global Drinks Intel understands that Diageo remains confident the transaction will proceed as planned.
The underlying legal dispute dates back to 2016, when Bia Tosha sued East African Breweries after failing to secure a renewed distribution agreement, having reportedly sought a 300% margin increase. Diageo maintains that the ownership change is irrelevant to the case and notes that Bia Tosha no longer operates as a distributor in the Kenyan market, with its former routes reassigned.
A directions hearing is scheduled for Friday (9 January), at which the court is expected to set timelines for submissions relating to the injunction application and any subsequent hearing.
At the start of last year, Diageo offloaded its majority stake in Guinness Ghana Breweries to Castel Group for a fee of US$81m, while other transactions impacted holdings in Guinness Nigeria and Guinness Cameroon in 2024 and 2022 respectively, with the Guinness Cameroon interest also having been acquired by Castel.
