South Africa, Jan. 9 -- Diageo, said last month it had agreed to sell its 65% stake in East African Breweries Limited to the Japanese brewer. Diageo is selling non-core assets to reduce debt, as well as offset the impact of US tariffs and a fall in sales driven by shifting consumer patterns.

Kenyan beer distributor Bia Tosha filed the case to try to block the deal this week over pending litigation dating back to 2016, sending Diageo's shares lower. EABL has said the case has no legal or factual link to the transaction.

Bahati Mwamuye, a judge at the court, said the deal parties could take preliminary steps such as seeking regulatory approvals, as long as the transaction was not finalised by 20 January, when the court will give further d...