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Stock impact report

Diageo agrees to sell Kenyan drinks unit to Asahi [BNN Bloomberg (Canada)]

Diageo plc (DEO) 
US:NYSE Investor Relations: diageo.com/en/investors
Company Research Source: BNN Bloomberg
The deal will see Diageo sell its 65 per cent stake in East African Breweries and its shareholding in spirits business UDVK. “This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet,” interim chief executive Nik Jhangiani said in a statement. Asahi, Japan's biggest brewer, said the Kenya and wider East Africa market offered opportunities for “long-term growth driven by population increase and economic expansion”. Diageo has sought to reduce its debt through divestments amid a tough trading environment and after announcing in May that it faces a financial hit from U.S. President Donald Trump's tariffs onslaught. The company last month gave a profit warning as it cautioned over weaker consumer demand in China and the United States, pressuring its share price which has tumbled this year. New chief executive Dave Lewis is set to take the helm next year, replacing Debra Crew after she resigned in Jul Show less Read more
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