A Kenyan beer distribution firm has filed a case at Kenya’s High Court seeking to block Diageo’s $2.3 billion sale of its local subsidiary EABL to Japan’s Asahi Holdings over pending litigation, a lawyer for the challenger said today.
Diageo, the owner of Guinness and the world’s biggest spirits group, said last month it had agreed a deal with the Japanese brewer for a sale of its 65% stake in EABL, as it responds to US tariffs and shifting consumer patterns.
But the deal faces a challenge by Kenyan distributor Bia Tosha, which has asked the court to stop it until its litigation against Diageo and EABL, over a competition dispute, is determined and settled.
Kenya’s High Court has certified the case as urgent and has set a hearing date for Friday, when it will give directions, Kenneth Kiplagat, Bia Tosha’s lawyer, told Reuters.
London-listed Diageo did not immediately respond to a request for comment.
EABL, which is listed on the Nairobi bourse, was not immediately available for comment.
Diageo’s shares slipped 1.6%, while EABL was 0.5% lower.
