Singapore-headquartered Tolaram Acquires 58.02% Stake in Guinness Nigeria


In a strategic move, Tolaram has finalized an agreement to acquire Diageo’s 58.02 percent shareholding in Guinness Nigeria, along with entering into long-term license and royalty agreements for the continued production of the Guinness brand and Diageo’s spirits in Nigeria. The terms of the agreement were signed on Tuesday, June 11, 2024.

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Upon completion of the transaction, Guinness Nigeria will continue to be listed on the Nigerian Exchange Limited. Tolaram plans to initiate a mandatory takeover offer (MTO), subject to regulatory approvals, in compliance with local laws. The transaction is expected to be finalized during Fiscal 2025.

Diageo expressed its ongoing commitment to Nigeria and will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long-term. This strategic move aims to facilitate the next phase of growth and development for Guinness Nigeria under Tolaram’s stewardship.

Tolaram, known for its extensive presence in Africa’s consumer goods sector over five decades, views the acquisition as an opportunity to strengthen its market position. The company has previously established successful joint venture partnerships with leading multinational consumer companies.

In collaboration with Guinness Nigeria and Tolaram, Diageo will maintain its involvement in driving the brand and marketing strategy to ensure sustained growth and innovation in Nigeria.

Omobola Johnson, Board Chair of Guinness Nigeria, remarked, “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria. Tolaram’s expertise in manufacturing and distribution, combined with Diageo’s brand building capabilities, positions Guinness Nigeria for continued success.”

Adebayo Alli, Managing Director/CEO of Guinness Nigeria, expressed excitement about the partnership, highlighting Tolaram’s alignment with the company’s values and commitment to sustainability.

Haresh Aswani, Managing Director of Tolaram Africa, emphasized the strategic importance of the acquisition, stating, “We are thrilled to welcome Guinness Nigeria into our ecosystem, leveraging our strengths to drive innovation and deliver value to customers and shareholders across Nigeria.”

The Singapore-headquartered conglomerate has a five-decade presence in Africa and is one of the largest consumer packaged goods companies on the continent. Tolaram has forged joint ventures with several leading consumer multinational companies such as Indofood, Kellanova (formerly known as Kellogg Company), Arla, and Colgate-Palmolive. Tolaram operates 30 world-class manufacturing facilities across Africa to produce and distribute leading brands in packaged food as well as personal care and home care.

Sajen Aswani, Chief Executive, Tolaram said, “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.”

“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,” added Haresh Aswani, Managing Director, Tolaram Africa.

This transaction aligns with Diageo’s strategy to operate a flexible and asset-light beer operating model while retaining ownership of the iconic Guinness brand.

“I’m excited to announce our new partnership with Tolaram. Guinness has been Nigeria’s favourite beer for nearly 75 years. 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,” commented Debra Crew, Diageo CEO.

The brand and marketing strategy for Guinness in Nigeria will continue to be influenced by Diageo, in partnership with Tolaram, to ensure long-term growth for Guinness and other Diageo products in the country.

About Tolaram
Tolaram is a Singapore-headquartered enterprise focused on investing in emerging market opportunities and building brands to propel economic growth and elevate communities. Since 1948, Tolaram has transformed from a single retail shop to a business that operates a diversified portfolio encompassing the consumer, infrastructure, and fintech verticals across Africa, Asia, and Europe. In Nigeria, its consumer business operates under joint ventures with leading blue-chip multinationals. Under these partnerships, Tolaram manufactures and distributes Nigeria’s leading brands, including Indomie, Minimie Chinchin, Kellogg’s, Munch It, Power Oil, Power Pasta, Dano, Hypo, and Colgate, amongst others. Tolaram’s success in Nigeria has enabled further expansion into Ghana, Egypt, South Africa, Eswatini, Kenya, Ivory Coast, Mozambique and Saudi Arabia. Today, Tolaram operates 30 world-class manufacturing facilities across Africa, of which 25 are in Nigeria with many of them based in the Lagos Free Zone, Tolaram’s wholly-owned private free trade zone with Lekki Deep Sea Port. Tolaram has a significant presence in Nigeria, with over 15,000 employees and combined investments of over $1 billion. Outside of Africa, Tolaram owns and operates a digital bank in Indonesia as well as the only paper packing mill in the Baltics.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247news
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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