Tolaram has agreed to acquire Diageo’s 58.02% shareholding in Guinness Nigeria Plc.
Guinness made this announcement via a press release on the website of the NGX.
This announcement is the latest in a string of major multinational organizations exiting the country citing tough economic challenges.
The transaction, expected to close in fiscal 2025 pending regulatory approvals, will also see Tolaram enter into long-term licensing and royalty agreements to continue producing the iconic Guinness brand alongside Diageo’s ready-to-drink and mainstream spirits locally.
Guinness has a market capitalization of N110.7 billion based on its current share price of N50.5 per share suggesting the deal could top over N64 billion.
Diageo, while selling its controlling stake, will maintain ownership of the Guinness brand, ensuring its legacy continues under the stewardship of Tolaram.
According to the company, this move aligns with Diageo’s “strategic vision to retain brand influence” while leveraging Tolaram’s “extensive” distribution and manufacturing capabilities.
With over fifty years in Africa, Tolaram is one of the continent’s leading consumer packaged goods companies.
It has a history of successful joint ventures with leading multinational corporations, and this deal potentially reinforces its position as a trusted partner in the African market.
The acquisition also marks a significant expansion of Tolaram’s footprint in Nigeria, promising enhanced innovation and value delivery to customers and shareholders.
Omobola Johnson, Board Chair of Guinness Nigeria, hailed the deal as a pivotal moment for the company.
“This partnership brings together Tolaram’s deep expertise in manufacturing and distribution with Diageo’s exceptional brand-building and innovation capabilities. It positions Guinness Nigeria for robust growth in this dynamic market,” she said.
