Emmanuel OchayiTolaram, a multinational company, is set to acquire Diageo’s 58.02% shareholding in Guinness Nigeria Plc, marking a significant shift in Nigeria’s beverage industry.
This development was revealed in a document filed with the Nigeria Stock Exchange, signed by Abidemi Ademola, Company Secretary of Guinness Nigeria Plc, on Tuesday.
Ademola explained, “The acquisition will allow Tolaram to play a leading role in Nigeria’s beverage sector. The transaction is expected to be completed during Fiscal 2025, pending necessary regulatory approvals.”
Despite the sale, Diageo will retain ownership of the Guinness brand. “As part of the agreement, Tolaram will enter into long-term license and royalty agreements to continue producing the Guinness brand, as well as Diageo’s locally manufactured ready-to-drink and mainstream spirits brands,” Ademola added.
The deal highlights Diageo’s ongoing commitment to the Nigerian market. Ademola emphasised, “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. This enables the next phase of growth and development of Guinness Nigeria under Tolaram’s stewardship.”
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Upon completion, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. Tolaram plans to launch a mandatory takeover offer, adhering to local law requirements to ensure a smooth transition and maintain investor confidence.
Omobola Johnson, Board Chair of Guinness Nigeria, praised the partnership, saying, “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.”
Haresh Aswani, Managing Director of Tolaram Africa, shared his enthusiasm, “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.”
This acquisition aligns with Tolaram’s broader strategy to strengthen its presence in Nigeria’s beverage market. By integrating Guinness Nigeria into its portfolio, Tolaram aims to enhance its market share and tap into the established brand loyalty that Guinness enjoys.
Industry analysts believe this move could reshape the competitive landscape of Nigeria’s beverage industry. Tolaram’s extensive experience in manufacturing and distribution is expected to complement Diageo’s branding and innovation prowess, potentially driving new growth opportunities for Guinness Nigeria.
However, the acquisition of Diageo’s majority stake by Tolaram is set to bring a new dynamic to the beverage industry in Nigeria. With regulatory approvals pending, the industry awaits the next steps in this significant transaction.
As both companies prepare for this transition, the focus remains on ensuring continued production excellence and fostering growth under Tolaram’s leadership.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
