Diageo Sells Majority Stake in EABL to Asahi for $2.3 Billion

The latest announcement is out from Diageo ( (GB:DGE) ).

Diageo has entered an agreement to sell its 65% shareholding in East African Breweries PLC (EABL) and Kenya-based UDVK spirits business to Asahi Group Holdings for an estimated $2.3 billion. This divestment aligns with Diageo’s strategy to strengthen its balance sheet and focus on core assets, while maintaining long-term licensing agreements with EABL for production and distribution of major Diageo brands. Introducing a major Japanese player, this move positions Asahi to expand its global footprint and brings fresh perspectives to the African beverage market, with implications for stakeholders, employees, and local consumers.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £2650.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Spark’s Take on GB:DGE Stock

According to Spark, TipRanks’ AI Analyst, GB:DGE is a Neutral.

Diageo’s overall stock score is driven by strong corporate events and a solid dividend yield. However, challenges in profitability margins, cash flow stability, and bearish technical indicators weigh on the score.

To see Spark’s full report on GB:DGE stock, click here.

More about Diageo

Diageo is a global leader in the beverage alcohol industry, offering a diverse portfolio of brands, including iconic spirits like Johnnie Walker, Smirnoff, Captain Morgan, and Guinness. Operating in nearly 180 countries, the company is listed on the London and New York Stock Exchanges. Its focus lies in producing high-quality, responsibly made products that cater to international markets.

Average Trading Volume: 5,216,138

Technical Sentiment Signal: Sell

Current Market Cap: £37.41B

For a thorough assessment of DGE stock, go to TipRanks’ Stock Analysis page.