Multinationals Exits: Guiness sells majority shares in Nigeria

Tolaram has agreed to purchase Diageo’s 58.02% stake in Guinness Nigeria Plc in a historic agreement that will significantly alter the beverage industry in Nigeria.

Guinness made this known in a press release on the NGX.

The announcement is the latest in a string of major multinational organizations exiting the country citing tough economic challenges.

The purchase, slated to be completed in fiscal 2025 assuming regulatory clearances, will also see Tolaram enter into long-term license and royalty agreements to continue producing the legendary Guinness brand alongside Diageo’s ready-to-drink and mainstream spirits locally.

Based on its current share price of N50.5 per share, Guinness has a market value of N110.7 billion, indicating that the acquisition might surpass N64 billion.

According to the company, this move aligns with Diageo’s strategic vision to retain brand influence while leveraging Tolaram’s extensive distribution and manufacturing capabilities.

The acquisition also marks a significant expansion of Tolaram’s footprint in Nigeria, promising enhanced innovation and value delivery to customers and shareholders.

Board Chair of Guinness Nigeria, Omobola Johnson, reacting to the deal said, “This partnership brings together Tolaram’s deep expertise in manufacturing and distribution with Diageo’s exceptional brand-building and innovation capabilities. It positions Guinness Nigeria for robust growth in this dynamic market.”

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Source:

Tribune Online