(Updates with Asahi's response in the fourth paragraph.)
Diageo's East African unit secured approval from the Kenyan antitrust authority to sell its 65% stake in East African Breweries to Asahi Group Holdings (TYO:2502) in a $2.3 billion deal, Bloomberg News reported Friday, citing a letter it had seen.
The sale is subject to conditions, including a requirement to set aside funds from the transaction to settle outstanding liabilities arising after deal conclusion, and the transaction will help Asahi Group establish its first direct operations in Africa.
The authority also requires the brewer to reserve 20% of cooler space in retail outlets for competitors' drinks.
Asahi said in an email response that it had been informed of the Competition Authority of Kenya's decision and was engaging with relevant stakeholders.
The Kenya competition authority and Diageo did not immediately respond to a request for comment.
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