In a significant development announced on June 11, 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria Plc. This acquisition includes long-term licence and royalty agreements for the continued production of the Guinness brand and locally manufactured Diageo ready-to-drink and mainstream spirits brands. The transaction is expected to finalise in Fiscal 2025, pending requisite regulatory approvals in Nigeria.
Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term, supporting the next phase of growth and development of Guinness Nigeria under Tolaram’s leadership. Tolaram, with a five-decade presence in Africa, is a major player in consumer packaged goods and has formed joint ventures with several leading multinational companies.
In collaboration with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria. This partnership aims to leverage Diageo’s expertise in brand building and innovation to ensure long-term growth for Guinness in Nigeria.
Post-transaction, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. and subject to regulatory approvals. Tolaram plans to launch a mandatory takeover offer in compliance with local law requirements.
The Board Chair of Guinness Nigeria, Omobola Johnson commented, “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, and 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.”
The Managing Director/CEO of Guinness Nigeria, Adebayo Alli added, “Today’s announcement marks an exciting moment for Guinness Nigeria, our employees and our customers. I look forward to working alongside Tolaram, which is one of the largest and most respected consumer goods companies in Africa, and I am pleased to note Tolaram’s alignment with Guinness Nigeria’s values and its strong commitment to build an enduring and sustainable business”.
Haresh Aswani, Managing Director of Tolaram Africa, also stated, “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.”
Melissa Enoch
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