Having scaled regulatory screenings and following approval from relevant authorities, Honeywell Flour Mills Plc (HFMP) has announced that Flour Mills of Nigeria Plc (FMN) has acquired a 71.69% stake in HFMP from three entities related to Honeywell Group and the transaction has now been consummated. This means that HFMP is no longer a member of the Honeywell Group owing to the acquisition.
The acquisition got nods of approval from all relevant regulators, namely the Federal Competition and Consumer Protection Commission (FCCPC); NGX Regulation Limited (NGX RegCo); and the Securities and Exchange Commission of Nigeria (SEC).
In November 22, 2021, FMN and Honeywell Group announced the proposed transaction which would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry. Honeywell Group disposed of a 71.69% stake in HFMP to FMN at an equity price of N4.20 per share.
Commenting on the transaction, Honeywell Group’s Managing Director, Mr. Obafemi Otudeko said: “We are pleased to have secured regulatory approvals for the transaction, which will create a business that further serves Nigerian consumers. As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure seamless integration, setting the combined company up for a successful future. We thank the NGX, FCCPC, and the SEC for their support, and will continue our close collaboration with them across our various businesses and investments to deliver on the national vision of building a resilient economy through successful enterprise.”
Mr. Boye Olusanya, Group Managing Director, FMN stated, “We are delighted that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness. We commend and thank all regulatory and approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”
He further noted, “Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa. Together, Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the evolving needs of our consumers. The acquisition will further serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings, enabling our customers across the nation to seamlessly benefit from improved access to a wider product range and a robust pan-Nigerian distribution network.”
