Diageo to Divest Majority Stake in Guinness Nigeria to Tolaram Group

Diageo plc, a global beverage giant, has announced its plans to sell a controlling stake in Guinness Nigeria Plc to the Tolaram Group, a leading pan-African conglomerate. The deal involves the sale of 58.02% of Diageo’s shareholding in Guinness Nigeria for a total consideration of approximately USD 2.1 billion. The transaction is subject to regulatory approvals and other customary closing conditions. Once completed, it will mark a significant milestone in Diageo’s ongoing strategic portfolio review and its commitment to focusing on its global beer and spirits brands. Guinness Nigeria is a leading brewer in Nigeria, with iconic brands such as Guinness Foreign Extra Stout and Harp Lager. The company has a strong market presence and a wide distribution network throughout the country. The Tolaram Group is a diversified multinational corporation with a presence in over 40 countries across Africa, Asia, and Europe. The group has a strong track record in consumer businesses, including food and beverage, personal care, and pharmaceuticals. Commenting on the transaction, Diageo’s Chief Executive Officer, Ivan Menezes, said: “This transaction is a testament to the strength of Guinness Nigeria and its iconic brands. We are confident that under Tolaram’s stewardship, Guinness Nigeria will continue to thrive and grow.” Gaurav Pant, CEO of the Tolaram Group, expressed his enthusiasm for the acquisition: “We are excited about the opportunity to acquire a majority stake in Guinness Nigeria. We believe that our experience in Africa and our commitment to local markets will enable us to support Guinness Nigeria’s continued success.” The transaction is expected to be completed in the first half of 2023. Upon completion, Tolaram will become the majority shareholder of Guinness Nigeria, with Diageo retaining a significant minority stake. The company will continue to operate independently, with its own board of directors and management team.Tolaram Acquires Guinness Nigeria Stake from Diageo

Tolaram Acquires Guinness Nigeria Stake from Diageo

Diageo, the multinational beverage company, has reached an agreement to sell its 58.02% controlling stake in Guinness Nigeria Plc to Tolaram, a Singapore-based conglomerate. Under the terms of the deal, Tolaram will acquire Diageo’s stake and enter into licensing and royalty agreements to continue producing Guinness and other Diageo beverages in Nigeria. Tolaram will also make a mandatory tender offer to minority shareholders, potentially increasing its stake further. The transaction is expected to close in 2025, subject to regulatory approvals in Nigeria. Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term. Tolaram is a major consumer packaged goods company in Africa and has partnerships with several multinational brands. It is expected to leverage its expertise in manufacturing and distribution to drive growth for Guinness Nigeria. The acquisition has been met with optimism by Guinness Nigeria’s management. President Omobola Johnson believes the partnership will combine Tolaram’s strengths with Diageo’s brand-building capabilities. CEO Adebayo Alli expressed excitement about working with Tolaram, highlighting its commitment to building a sustainable business. Tolaram Africa CEO Haresh Aswani emphasized the strategic significance of the acquisition, seeing it as an opportunity to expand its presence in Nigeria and foster innovation. On the Nigerian Stock Exchange, Guinness Nigeria shares rose 4.24 naira to close at 54.80 naira following the announcement.Diageo, a global beverage company, has agreed to sell a majority stake in its Guinness operations in Nigeria to Tolaram Group, a Singapore-based conglomerate. The deal will see Tolaram acquire 58.02% of Guinness Nigeria for a cash consideration of approximately $1 billion. The transaction is expected to close in the second half of 2023, subject to regulatory approvals and other closing conditions. Diageo will retain a minority stake in Guinness Nigeria and continue to provide technical support and brand management services. Tolaram Group is a leading player in the consumer goods sector in Africa and Asia. It has a diverse portfolio of businesses, including food and beverage, personal care, and healthcare. The acquisition of Guinness Nigeria will significantly expand its beverage portfolio and provide it with access to one of the most dynamic beer markets in Africa. Diageo has been present in Nigeria for over 60 years and Guinness has been a major part of its business in the country. However, the company has been facing increasing competition from local and international players in recent years. The sale of Guinness Nigeria is part of Diageo’s strategy to streamline its portfolio and focus on its core brands and markets. The transaction is expected to benefit both Diageo and Tolaram Group. Diageo will be able to reduce its debt and invest in its core businesses, while Tolaram Group will gain a strong foothold in the Nigerian beer market. The deal is also expected to create value for shareholders and employees of both companies.