June 11, 2024/NGX
Tolaram Group has signed an agreement to acquire 58.02% of Diageo’s shareholding in Guinness Nigeria. Additionally, Tolaram will establish long-term license and royalty agreements for the ongoing production of the Guinness brand, Diageo’s locally manufactured ready-to-drink beverages, and mainstream spirits brands. The completion of this transaction is expected during fiscal 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. This will enable the next phase of growth and development of Guinness Nigeria under the stewardship of Tolaram.
With a five-decade presence in Africa, Tolaram is one of the largest consumer packaged goods companies on the continent and has forged joint venture partnerships with several leading consumer multinational companies.
In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria. This will ensure that Diageo’s exceptional capabilities in brand building and innovation continue to drive long-term growth for Guinness in Nigeria.
After the completion of this transaction, Guinness Nigeria will continue to be listed on the Nigerian Exchange Ltd. Pending regulatory approvals, Tolaram plans to initiate a mandatory takeover offer in compliance with local law requirements.
Omobola Johnson, Board Chair of Guinness Nigeria, stated: “Today’s announcement signifies a significant opportunity for the next phase of growth for Guinness Nigeria. This partnership will unite Tolaram’s extensive manufacturing and distribution expertise with Diageo’s exceptional brand building and innovation capabilities. I believe that this winning combination will position Guinness Nigeria very well to further drive growth in this market.”
Adebayo Alli, Managing Director and Chief Executive Officer of Guinness Nigeria, expressed his excitement at today’s announcement, stating that it marks a significant moment for Guinness Nigeria, its employees, and customers. He looks forward to collaborating with Tolaram, one of the largest and most respected consumer goods companies in Africa. He also noted Tolaram’s alignment with Guinness Nigeria’s values and strong commitment to building an enduring and sustainable business.
Haresh Aswani, Managing Director of Tolaram Africa, welcomed Guinness Nigeria into the Tolaram ecosystem, praising the company’s rich legacy and strong consumer loyalty. This strategic move is expected to expand Tolaram’s significant footprint in the Nigerian market and create an opportunity to leverage combined strengths to foster innovation and deliver immense value to customers and shareholders nationwide.
