The proposed sale of East African Breweries Limited to Japan’s Asahi Group Holdings has moved closer to completion after the High Court dismissed an attempt to block the deal.

In a ruling issued on Thursday, the court declined an application by Bia Tosha that sought to halt the transaction involving Diageo and Asahi, effectively clearing the path for the process to continue.

The case had attracted wide interest across Kenya’s business and investment community, with many watching closely to see whether the legal challenge would disrupt or delay the agreement.

Bia Tosha had requested interim orders to suspend the deal, although the specific concerns raised were not outlined in the court’s summary. The judge, however, determined that the application lacked sufficient merit.

“The petitioner’s notice of motion dated 5th January 2026 is hereby dismissed,” ruled High Court judge Bahati Mwamuye, adding that any existing orders that could stand in the way of completing the transaction had been lifted.

Following the decision, EABL expressed satisfaction with the outcome, saying it strengthens trust in the region’s legal and regulatory systems governing large-scale corporate deals.

“This decision allows the transaction to proceed to completion through standard regulatory channels,” the company said in a statement.

The deal stems from an announcement made in December, when London-listed Diageo revealed plans to offload its 65 percent stake in EABL to Asahi as part of efforts to cut debt and stimulate growth.

With the court matter now settled, the next phase will involve approvals from competition authorities and other regulatory bodies.

The transaction is part of a broader strategic shift by Diageo and Asahi, both major global players in the beverage industry. Market analysts view the move as consistent with wider trends of consolidation and portfolio restructuring within the sector.

For EABL, the ruling removes a key hurdle, allowing the process to regain momentum.

The brewer, a dominant force in East Africa’s drinks market and long considered a major investment asset in the region, now awaits regulatory clearance to finalize the transaction.

Asahi, headquartered in Tokyo, has been actively seeking expansion opportunities in regions such as Africa and South America as part of its global growth ambitions. At the time of the deal’s announcement, Chief Executive Atsushi Katsuki highlighted EABL’s strong brand portfolio, marketing strength, and production capacity as key attractions.