Lagos (INVESTADVOCATE)-Flour Mills of Nigeria Plc has notified The Exchange through its Financial Adviser – Chapel Hill Advisory Partners Limited – of the proposed acquisition of 90% equity in ROM Oil Mills Limited.

The company has taken this strategic decision for purposes of facilitating an investment in an entity which is engaged in the production of refined edible oils and associated products; which is in furtherance of Flour Mills’ focus on its Food and Agro-allied businesses.

The company intends to enhance sustained profitability in this regard by acquiring the 90% shareholding in ROM Oil, a mid-sized oil milling, company based in Ibadan.

The proposed acquisition of 90% equity in ROM Oil will further enhance Flour Mills’ group synergies as a substantial part of the raw materials used in the production of refined edible oils and associated products will be sourced from the Company’s commercial farming businesses. Similarly, the refined oils and by-products will serve as key inputs in Flour Mills’ animal feed mills.

The shareholders of Flour Mills approved the acquisition on September 12, 2012.