In a significant development within the Nigerian consumer goods market, Tolaram Africa, a company with nearly five decades of presence in Africa, has acquired a major stake in Guinness Nigeria.
This was disclosed to the Nigerian Exchange Group by Diageo’s Company Secretary, Abidemi Ademola, who announced that the agreement for the acquisition was signed on June 11, 2024.
“Tolaram will acquire Diageo’s 58.02% 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,” Ademola said.
The transaction is expected to be completed during Fiscal 2025, pending regulatory approvals in Nigeria.
Despite the sale, Diageo will retain ownership of the Guinness brand, licensing it to Guinness Nigeria for the long term. This arrangement aims to ensure the continued growth and development of Guinness Nigeria under Tolaram’s stewardship. “In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria,” Ademola added, highlighting Diageo’s commitment to maintaining its brand-building and innovation efforts in the Nigerian market.
Upon completion of the transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. Additionally, subject to regulatory approvals, Tolaram plans to launch a mandatory takeover offer in compliance with local law requirements.
Omobola Johnson, Board Chair of Guinness Nigeria, expressed optimism about the new partnership, stating, “Today’s announcement represents a significant opportunity for the next phase of growth for Guinness Nigeria. 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.”
Managing Director of Guinness Nigeria, Adebayo Alli, also shared his enthusiasm: “Today’s announcement marks an exciting moment for Guinness Nigeria, our 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.”
Haresh Aswani, Managing Director of Tolaram Africa, echoed these sentiments: “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.”
