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CAK’s Sh15 billion demand blocks Diageo’s EABL sale
Atsushi Katsuki, President and Group Chief Executive Officer, Director and Representative Executive Officer of Asahi Group Holdings, and EABL Group CEO and Managing Director Jane Karuku after a meeting with EABL staff shortly after the announcement that Asahi Group has bought Diageo PLC's shares in EABL. Mr Katsuki was accompanied at the visit to EABL by Taemin Park, Group Chief Growth and Alliance Officer (in spectacles).
The Competition Authority of Kenya (CAK) is demanding that East Africa Breweries Limited (EABL) establish a Sh15.5 billion reserve fund before approving Diageo’s sale of 65 percent stake in the brewer, forcing a stalemate in the Sh388.2 billion deal.
The competition watchdog wants EABL to establish a dedicated reserve equivalent to four percent of the transaction value that Japan's Asahi Holdings will pay Diageo for liabilities that will crystallise after the deal.
