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Diageo Exits Nigeria After 60 Years, Sells Majority Shares In Guinness To Tolaram

Diagoe Plc has agreed to sell 58.02 per cent of its shares in Guinness Nigeria to Tolaram.

Guinness disclosed this in a regulatory filing on Tuesday. Diegeo is the parent company of Guinness Nigeria.

Based on the acquisition terms and agreement signed on 11 June 2024, Tolaram will acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria, and enter into long-term license and royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands.

Guinness said the transaction is expected to be completed in 2025, subject to regulatory approvals.

The company said, “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, enabling the next phase of growth and development of Guinness Nigeria under the stewardship of Tolaram.

“In partnership with Guinness Nigeria and Tolaram, Diageo will continue to drive the brand and marketing strategy for Guinness in Nigeria, to ensure Diageo’s exceptional capabilities in brand building and innovation continue to drive long-term growth for Guinness in Nigeria.”

Guinness Nigeria will remain listed on the Nigerian Exchange Ltd and, subject to regulatory approvals, Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements.

Board Chair, Guinness Nigeria Omobola Johnson said, “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, Tolaram Africa, Haresh Aswani said, “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.”

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