Diageo's Kenya Stake Sale Unlikely to Be Last Balance-Sheet Efforts -- Market Talk

Dow Jones
2025/12/17

0949 GMT - Diageo is likely to take further steps to remedy its balance sheet, but wider questions remain over its performance ahead, analysts at J.P. Morgan Cazenove say, after the booze company offloaded its majority stakes in two Kenyan businesses to Japan's Asahi. Those divestments will bring in around $2.3 billion, Diageo said. Also, with a new CEO due to take the helm at the beginning of the new year, the focus is likely to remain on the balance sheet, JPM Cazenove says. "[But] the wider questions (and rating driver) remain on re-accelerating the top line amid the continuing pressure on global spirits demand," the U.S. investment bank says. "Hence leaving us on the sidelines on Diageo at this juncture." London-listed shares in Diageo gain 1.7% to 17.11 pounds after news of the stake sales. (joshua.kirby@wsj.com; @joshualeokirby)

 

(END) Dow Jones Newswires

December 17, 2025 04:49 ET (09:49 GMT)

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