Tolaram to Acquire Diageo’s Majority Stake in Guinness Nigeria
Multinational conglomerate Tolaram is poised to acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria Plc. This significant transaction, disclosed in a document filed with the Nigeria Stock Exchange and signed by Guinness Nigeria’s Company Secretary, Abidemi Ademola, on Tuesday, marks a pivotal shift in Nigeria’s beverage sector.
Ademola indicated that the acquisition will enable Tolaram to establish a dominant presence in Nigeria’s beverage market. The transaction, slated for completion during Fiscal 2025, is contingent upon receiving the necessary regulatory approvals.
As part of the deal, Tolaram will enter into long-term license and royalty agreements to maintain the production of the Guinness brand, along with Diageo’s locally manufactured ready-to-drink and mainstream spirits brands. Despite selling its majority stake, Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for an extended period.
The statement reads, “Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria and enter into long-term license and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands. The transaction is expected to be completed during Fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria. Diageo remains deeply committed to Nigeria and will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long-term, enabling the next phase of growth and development of Guinness Nigeria under the stewardship of Tolaram.”
Post-transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. Tolaram plans to launch a mandatory takeover offer in line with local law requirements, ensuring a smooth transition and sustained investor confidence.
Commenting on the partnership, Omobola Johnson, Board Chair of Guinness Nigeria, remarked, “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria. This partnership brings together Tolaram’s deep expertise in manufacturing and distribution, and Diageo’s exceptional capabilities in brand building and innovation.”
Haresh Aswani, Managing Director of Tolaram Africa, highlighted the strategic benefits of the acquisition, stating, “We are thrilled to welcome Guinness Nigeria, a company with such a rich legacy and strong consumer loyalty, into our ecosystem. This strategic move will expand our significant footprint in the Nigerian market and presents an opportunity to leverage our combined strengths to foster innovation and deliver immense value to our customers and shareholders across the nation.”
This acquisition underscores a transformative moment for Guinness Nigeria, promising robust growth and sustained market leadership under Tolaram’s guidance.
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