Another Multinational Company May Exit Africa. PZ Cussons, a British consumer goods company, is thinking about leaving Africa. They are the makers of popular brands like Canoe, Premier Cool, and Devon Kings.
Nigeria and Kenya Are Big Markets for PZ Cussons
Nigeria and Kenya are the two biggest places where PZ Cussons does business in Africa. Together, these countries make up 28.7% of the company’s total sales.
Why is PZ Cussons Thinking of Leaving?
The company says that the weak Nigerian naira is hurting their profits. They also say that they have received offers from other companies that want to buy their African operations.
PZ Cussons Lost Money in Nigeria Last Year
In August, PZ Cussons reported its first annual loss in years in Nigeria. The loss was caused by the falling value of the naira.
Company Shares Have Fallen
The price of PZ Cussons shares has gone down by 40.8% this year. This is worse than the overall performance of the Nigerian stock market.
Failed Attempt to Take Company Private
Earlier this year, PZ Cussons tried to take its Nigerian unit private. This means they wanted to buy out the shares of the minority shareholders. However, the Securities and Exchange Commission (SEC) blocked this deal.
What Does This Mean for Nigeria?
If PZ Cussons leaves Nigeria, it would be another blow to the country’s economy. Many multinational companies have been struggling in Nigeria due to the weak economy and other challenges.
It is important to note that PZ Cussons has not made a final decision about leaving Africa. However, the company’s statement suggests that this is a possibility.
