• Diageo may sell its East African beer operations worth up to $2 billion.

• The company has hired Bank of America and Goldman Sachs for a strategic review.

• French brewer Castel emerges as a likely buyer after multiple past acquisitions.

Diageo, the British spirits giant behind Johnnie Walker and Guinness, may exit a major chunk of Africa's beer market. On July 28, Bloomberg News reported that Diageo is reviewing its stake in East African Breweries Ltd (EABL), a major subsidiary operating in Kenya, Uganda, and Tanzania. Diageo owns 65% of EABL.

Diageo reportedly hired Bank of America and Goldman Sachs Group to conduct the review. Sources close to the matter told Bloomberg that one possible outcome is the full or partial sale of EABL’s beer business, which analysts estimate could fetch up to $2 billion.

Diageo has not officially confirmed the review. However, the move would not be surprising. The company has already offloaded several beer-related assets across Africa. It sold Guinness Cameroon, exited Guinness Nigeria, reduced stakes in Guinness Ghana, and left Seychelles Breweries Ltd (Seybrew).

If Diageo proceeds with the sale, industry insiders expect interest from Heineken, AB InBev, and especially Castel. Castel, already active in Africa after acquiring Diageo’s brewery in Ethiopia through Brasseries et Glacières Internationales (BGI) in 2022, could deepen its presence in East Africa with an EABL acquisition. Castel also owns Guinness Cameroon and Guinness Ghana, making it a strong contender.

This article was initially published in French by Espoir Olodo

Edited in English by Ange Jason Quenum