Diageo Agrees To Sell Guinness Nigeria To Tolaram

Diageo, the majority foreign shareholder in Guinness Nigeria Plc, has confirmed its agreement to sell its controlling equity stake of 58.02 per cent to Tolaram, a multinational company based in Singapore.

According to the agreement signed on Tuesday, Tolaram will purchase Diageo’s 58.02 per cent shareholding in Guinness Nigeria and establish long-term license and royalty agreements for the ongoing production of the Guinness brand, as well as the locally produced Diageo ready-to-drink and mainstream spirits brands.

With the acquisition of 58.02 per cent, Tolaram will also conduct a mandatory tender offer to acquire shares held by minority shareholders, potentially increasing the new core investor’s controlling interest.

In a regulatory filing with the Nigerian Exchange Market (NGX), the board of Guinness Nigeria stated that the transaction is anticipated to be finalized in 2025, pending the necessary regulatory approvals in Nigeria.

“Diageo remains deeply committed to Nigeria and will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long-term, enabling the next phase of growth and development of Guinness Nigeria under the stewardship of Tolaram,” Guinness Nigeria stated.

Tolaram, a company with a strong presence in Africa for over five decades, is one of the largest consumer packaged goods companies on the continent.

The company has successfully formed joint venture partnerships with several renowned multinational companies in the consumer industry.

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Guinness Nigeria has acknowledged the partnership with Tolaram and emphasized that Diageo will continue to spearhead the brand and marketing strategy for Guinness in Nigeria.

This collaboration aims to leverage Diageo’s exceptional expertise in brand building and innovation to drive sustained growth for Guinness in the Nigerian market.

As per the plan, Guinness Nigeria will remain listed on the NGX even after the completion of the transaction. However, recent acquisitions have resulted in the complete takeover and delisting of certain companies.

Omobola Johnson, Chairman of Guinness Nigeria, expressed that the acquisition announcement signifies 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,” Johnson said on Tuesday.

On his part, the Managing Director of Guinness Nigeria, Adebayo Alli, described the announcement as an exciting moment for Guinness Nigeria, its employees and customers.

He said: “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 building an enduring and sustainable business.”

Haresh Aswani, the Managing Director of Tolaram Africa, expressed excitement about the company’s new partnership with Guinness Nigeria, a brand deeply rooted in history and known for its dedicated customer base.

“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,” Aswani said.