Nairobi, Sept. 1 -- Competition Authority of Kenya (CAK) can proceed with its review of the proposed acquisition of Diageo's 65 percent stake in East African Breweries (EABL) by Japan's Asahi Group Holdings, even as a legal challenge over the transaction remains pending before the High Court.

In a ruling delivered on Monday, the High Court clarified that the competition regulator is free to continue evaluating the transaction and make a determination under the Competition Act.

The court also said an appeal challenging the deal before the Capital Markets Tribunal should proceed. However, the transfer of Diageo's controlling stake to Asahi cannot be completed until the ongoing court case is determined.

The court held that maintaining the...