Singapore-based consumer group Tolaram has agreed to buy Diageo's 58.02% shareholding in Guinness Nigeria and enter into long-term licence and royalty agreements, the Nigerian brewer said in a statement.
Diageo, which makes Johnnie Walker Scotch and Smirnoff vodka, would retain ownership of the Guinness brand, which it will licence to Guinness Nigeria, along with locally manufactured Diageo ready-to-drink and mainstream spirits.
The transaction is expected to be completed during the 2025 financial year subject to regulatory approvals in Nigeria.
Guinness declared a loss before tax of 56 billion naira (€35 million) in the first quarter of this year compared with a 2.71 billion naira (€1 million) profit during the same period last year.
Following completion of this transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd.
'Drive Further Growth'
Omobola Johnson, board chair of Guinness Nigeria, stated, "This partnership brings together Tolaram's deep expertise in manufacturing and distribution, and Diageo's exceptional capabilities in brand building and innovation. I believe this is a winning combination which leaves Guinness Nigeria extremely well placed to drive further growth in this market."
Adebayo Alli, managing director/chief executive officer of Guinness Nigeria, described the partnership as "an exciting moment" for Guinness Nigeria, its employees and our customers.
"I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa, and I am pleased to note Tolaram's alignment with Guinness Nigeria's values and its strong commitment to build an enduring and sustainable business," Alli added.
Tolaram
Tolaram has been present in Africa for five decades as one of the continent's leading consumer packaged goods companies.
The partnership with Guinness Nigeria will see Diageo continue to drive the brand and marketing strategy for Guinness in Nigeria.
Haresh Aswani, managing director of Tolaram Africa, said, "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."
News by Reuters, additional reporting by ESM.
