Tolaram Africa, a consumer packaged goods company with a nearly five-decade experience in Africa, has purchased a significant share in Guinness Nigeria.
Diageo’s Company Secretary, Abidemi Ademola, updated the Nigerian Exchange Group on recent developments within the bank, stating that the conditions of a deal for Tolaram’s acquisition of the shares were signed today, June 11, 2024.
“Tolaram will buy Diageo’s 58.02% stake in Guinness Nigeria and enter into long-term license and royalty agreements to continue producing the Guinness brand as well as its locally made 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,” Ademola stated.
Ademola stated that Diageo remained genuinely committed to Nigeria and would retain ownership of the Guinness brand, which would be long-term licensed to Guinness Nigeria, allowing the company to move forward with its growth and development under Tolaram’s leadership.
“In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria, to ensure Diageo’s exceptional capabilities in brand building and innovation continue to drive long-term growth for Guinness in Nigeria.”
According to Ademola, Guinness Nigeria will continue listed on the Nigerian Exchange Ltd. after this transaction, and Tolaram intends to launch a required takeover offer in accordance with local legal requirements, subject to regulatory permission.
Omobola Johnson, Board Chair of Guinness Nigeria, stated that today’s announcement marks a tremendous opportunity for Guinness Nigeria’s next phase of expansion. This cooperation combines Tolaram’s extensive manufacturing and distribution experience with Diageo’s unparalleled brand building and innovation capabilities. I believe this is a winning mix, and Guinness Nigeria is incredibly well positioned to achieve additional growth in this market.”
Adebayo Alli, Managing Director of Guinness Nigeria, stated, “Today’s announcement is very exciting for Guinness Nigeria, our workers, and our customers. I am excited to collaborate with Tolaram, one of Africa’s largest and most regarded consumer goods firms, and I am thrilled to see Tolaram’s affinity with Guinness Nigeria’s values and strong commitment to building an enduring and sustainable business.”
Haresh Aswani, Managing Director of Tolaram Africa, added, “We are excited to welcome Guinness Nigeria, a firm with such a rich tradition and great consumer devotion, into our ecosystem. This strategic move will increase our strong presence in the Nigerian market and provide an opportunity to utilize our combined strengths to drive innovation and create enormous value to our customers and shareholders throughout the country.”
