- Singaporean firm Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria PLC.
- Tolaram has significant and extensive operations and a 50-year presence in Nigeria.
- Diageo will also remain in the country through its wholly owned international premium spirits business built to serve a wider geographic reach across West Africa, with Nigeria as one of the main operational hubs.
In a major shake-up in Africa’s beverage industry, Guinness Nigeria has announced that Tolaram, a Singaporean company, has signed an agreement to acquire UK-based Diageo’s 58.02 per cent shareholding in the company. This acquisition is set to be completed in 2025, subject to regulatory approvals in Nigeria.
In the deal, Diageo will retain ownership of the Guinness brand, and it will be licensed to Guinness Nigeria for the long-term, enabling its continued growth and development in the country under the stewardship of Tolaram.
Abidemi Ademola, Guinness Nigeria’s secretary and legal director disclosed the plan on Tuesday. Diageo CEO Debra Crew weighed in on the partnership with Tolaram, citing Guinness Nigeria’s strong legacy in Africa’s most populous market.
“Guinness has been Nigeria’s favourite beer for nearly 75 years.” Crew stated. “Tolaram share this passion for Guinness and for Nigeria, making them the perfect partners as we continue to grow our business and seek to delight even more consumers in the country.”
Guinness Nigeria to remain listed on stock exchange
The transaction is historic in Guinness Nigeria, which will remain listed on the Nigerian Exchange Ltd. Tolaram plans to launch a mandatory takeover offer in compliance with local laws once the transaction is completed.
The UK-based multinational said it is creating a new model for Guinness in Nigeria and its locally manufactured ready-to-drink (RTD) and mainstream spirits (MSS) products in the country partnering with Tolaram, the specialist manufacturing, marketing and distribution conglomerate, under new, long-term license and royalty agreements.
Haresh Aswani, Managing Director, Tolaram Africa said, ““The acquisition of Guinness Nigeria marks a pivotal moment in Tolaram’s journey of growth and diversification. We are thrilled to welcome a company with such a rich legacy and strong consumer loyalty into our ecosystem. This strategic move not only expands our footprint in the Nigerian market but also presents an opportunity to leverage our combined strengths to foster innovation and deliver immense value to our customers and stakeholders across the nation”.
Guinness Nigeria bets on innovation to grow
Guinness Nigeria’s Managing Director and CEO, Adebayo Alli, echoed this sentiment, noting the potential for growth and innovation. “Today’s announcement marks an exciting moment for Guinness Nigeria, our employees, and our customers. I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa. I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to building an enduring and sustainable business,”
Haresh Aswani, Managing Director of Tolaram Africa, expressed enthusiasm about the acquisition. ““Our partnership with Diageo to jointly grow Guinness Nigeria underscores our commitment to build on our strong presence and heritage in Nigeria, cultivated over decades of dedication and unwavering confidence in the future of Africa. We take a long-term view on all our investments and this partnership reflects our optimism on the exciting opportunities that lie ahead across the continent.”
Tolaram businesses across Africa
Tolaram, established in 1948 and headquartered in Singapore, operates a diversified busines portfolio across Africa, Asia, and Europe. In Nigeria, tolaram’s consumer business operates under joint ventures with leading multinational companies, including Indofoof, Kellanova, (formerly Kellogg Company), Dano, and Colgate-Palmolive. These partnerships have seen Tolaram manufacture and distribute some of Nigeria’s leading brands, such as Indomie, Kellogg’s, Power Oil and Colgate.
Tolaram’s success in Nigeria has fueled expansion into other African markets, with operations in Ghana, Egypt, South Africa, and more. The company runs 30 world-class manufacturing facilities across Africa, with 25 located in Nigeria, especially in the Lagos Free Zone. At the moment, Tolaram employs roughly 15,000 workers across its over $1 billion worth of investments in Nigeria alone.
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