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Tolaram with Interest in Indomie to Acquire Majority Stake in Guinness Nigeria, as Diageo Re-strategises its African operations

Tolaram Group with interest in Indomie and other leading brands is acquiring majority shares in Guinness Nigeria from Diageo which is changing its African strategy.

Tolaram Group, a diversified holding company with interests in consumer goods such as Indomie and Kellogg, is set to acquire a 58.02% stake in Guinness Nigeria. This move follows an agreement reached with the current majority shareholder, Diageo.

Under the terms of the deal reported by the Nigeria media, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria and will enter into long-term license and royalty agreements to continue producing the Guinness brand and other Diageo beverages in Nigeria. Additionally, Tolaram will make a mandatory tender offer to minority shareholders, potentially increasing its controlling stake in Guinness Nigeria.

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In a regulatory filing with the Nigerian Exchange on Tuesday, the board of Guinness Nigeria announced that the transaction is expected to be completed in 2025, pending necessary regulatory approvals in Nigeria.

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“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,” the company stated.

Tolaram has a significant presence in Africa as one of the largest consumer packaged goods companies on the continent and has partnerships with several leading consumer multinational companies. Headquartered in Singapore, Tolaram has stakes in Nestle West Africa and De United Foods Industries Ltd, producers of Indomie and Kellogg brand products, among others.

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Omobola Johnson, Chairman of Guinness Nigeria, emphasized the growth potential of the acquisition. “This partnership brings together Tolaram’s deep expertise in manufacturing and distribution and Diageo’s exceptional capabilities in brand building and innovation. I believe this is a winning combination which leaves Guinness Nigeria extremely well placed to drive further growth in this market,” Johnson said.

Haresh Aswani, Managing Director of Tolaram Africa, expressed excitement about the acquisition. “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,” Aswani said.

Diego in 2022 sold off its controlling stakes in Guinness Cameroon and Meta Abo Brewery in Ethiopia to Castel Group. However, it still holds a majority share of 52.42% in Guinness Ghana Breweries.

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