Tolaram Africa, a prominent consumer packaged goods company with a presence spanning nearly five decades across Africa, has announced the acquisition of a major stake in Guinness Nigeria. This significant development was disclosed in an update to the Nigerian Exchange Group, provided by Abidemi Ademola, the Company Secretary for Diageo. Ademola revealed that on June 11, 2024, an agreement was signed detailing the terms for Tolaram’s acquisition of shares in Guinness Nigeria.
According to the agreement, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria. Additionally, Tolaram will enter into long-term license and royalty agreements to ensure the continued production of the Guinness brand, as well as Diageo’s locally manufactured ready-to-drink and mainstream spirits brands. The completion of this transaction is anticipated during the fiscal year 2025, pending the necessary regulatory approvals in Nigeria.
Ademola emphasized Diageo’s ongoing commitment to Nigeria, stating that Diageo will retain ownership of the Guinness brand. The brand will be licensed to Guinness Nigeria for the long term, facilitating the next phase of growth and development under Tolaram’s leadership. “In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria,” Ademola noted, highlighting Diageo’s continued role in brand building and innovation to ensure long-term growth for Guinness in the Nigerian market.
Further reinforcing the company’s future plans, Ademola mentioned that after the completion of the transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. Additionally, Tolaram plans to launch a mandatory takeover offer in compliance with local legal requirements, subject to regulatory approvals.
Omobola Johnson, the Board Chair of Guinness Nigeria, expressed optimism about the partnership. “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, alongside 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 stated.
Managing Director of Guinness Nigeria, Adebayo Alli, shared similar sentiments, describing the announcement as a pivotal moment for the company, its employees, and customers. “I look forward to working alongside Tolaram, one of the largest and most respected consumer goods companies in Africa. I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to build an enduring and sustainable business,” Alli said.
Haresh Aswani, Managing Director of Tolaram Africa, also commented on the acquisition. “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,” Aswani remarked.
This acquisition marks a significant chapter for Guinness Nigeria, blending Tolaram’s extensive manufacturing and distribution expertise with Diageo’s renowned brand-building capabilities. As both companies prepare to embark on this new journey, the partnership is poised to drive innovation, sustainability, and growth in the Nigerian market.
