Tolaram to Acquire Diageo’s 58% Stake in Guinness Nigeria, Launch Mandatory Takeover Offer

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Tolaram will acquire Diageo’s 58.02 percent 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 terms of the agreement were signed on Tuesday, June 11, 2024.

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Following the completion of this transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Limited. Subject to regulatory approvals, Tolaram plans to launch a mandatory takeover offer (MTO) in compliance with local law requirements. The transaction is expected to be completed during Fiscal 2025, pending requisite regulatory approvals in Nigeria. Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term, facilitating the next phase of growth under Tolaram’s stewardship.

With a five-decade presence in Africa, Tolaram is one of the largest consumer packaged goods companies on the continent, having formed joint venture partnerships with several leading consumer multinational companies.

In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria, ensuring its exceptional capabilities in brand building and innovation contribute to long-term growth for Guinness in Nigeria.

Omobola Johnson, Board Chair of Guinness Nigeria, stated, “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria. This partnership combines Tolaram’s deep expertise in manufacturing and distribution with Diageo’s exceptional brand building and innovation capabilities. I believe this is a winning combination that leaves Guinness Nigeria well-placed to drive further growth in this market.”

Adebayo Alli, Managing Director/Chief Executive Officer of Guinness Nigeria, added, “Today’s announcement marks an exciting moment for Guinness Nigeria, our employees, and our customers. I look forward to working alongside Tolaram, 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, commented, “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.”

OyinyeChukwu Paula
OyinyeChukwu Paulahttp://Vetiva%20Research
OyinyeChukwu Paula Position: Business Journalist, Naija247news OyinyeChukwu Paula is an accomplished business journalist contributing her expertise to Naija247news, one of Nigeria's leading news platforms. With a keen interest in economic affairs, financial markets, and corporate developments, Paula brings a wealth of knowledge to her reporting, delivering insightful analyses on the dynamic business landscape in Nigeria and beyond. Education: Paula holds a degree in Journalism from [Abia State University], where she honed her skills in investigative reporting and business journalism. Her academic background laid the foundation for her commitment to delivering accurate and timely news with a business-focused perspective. Professional Experience: Having amassed experience in the field, Paula's journalistic journey has been marked by a dedication to uncovering stories that impact the business community. Her work spans interviews with key industry figures, coverage of market trends, and in-depth analyses of economic policies. Areas of Expertise: Financial Markets: Paula provides comprehensive coverage of financial markets, offering insights into stock movements, currency fluctuations, and economic indicators. Corporate Affairs: With a focus on corporate activities, Paula delves into mergers and acquisitions, financial reports, and the strategies employed by leading companies. Economic Policy: Keeping a watchful eye on government policies, Paula explores their implications on businesses and the broader economy, providing readers with a nuanced understanding of economic developments. Contributions to Naija247news: Paula's bylines at Naija247news reflect her commitment to delivering quality journalism. Whether unraveling complex financial narratives or simplifying intricate economic concepts, she ensures that her audience is well-informed and empowered. Passion for Business Journalism: Beyond the newsroom, Paula is known for her passion for business journalism's role in fostering transparency and accountability. She believes in the power of information to drive positive change and economic growth. In a media landscape marked by rapid changes, OyinyeChukwu Paula stands out as a dedicated business journalist who continues to shape the discourse on economic matters, contributing significantly to Naija247news's mission of delivering credible and impactful news.

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