In a landmark deal poised to reshape Nigeria’s consumer goods landscape, Tolaram, a leading player in Africa’s consumer packaged goods sector, has acquired Diageo’s 58.02% shareholding in Guinness Nigeria Plc for ₦81.60 per share—a 63% premium to the 30-day volume-weighted average price (VWAP). The transaction, signed on June 11, 2024, signifies the beginning of a strategic partnership that blends brand heritage with operational excellence.
Deal Highlights: Ownership Transfer, Brand Continuity
Under the terms of the agreement, Tolaram will assume majority control of Guinness Nigeria, while Diageo will retain ownership of the Guinness brand, licensing it long-term to Guinness Nigeria. The deal also includes long-term license and royalty agreements for Diageo’s locally manufactured ready-to-drink and mainstream spirits.
The transaction is expected to close in Fiscal 2025, pending regulatory approvals in Nigeria. Upon completion, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd., with Tolaram expected to initiate a mandatory takeover offer in compliance with local regulations.
A Strategic Alliance of Strengths
Tolaram’s acquisition brings its five-decade legacy and vast distribution network to one of Nigeria’s most recognized beverage brands. The company, known for successful joint ventures with global consumer goods multinationals, aims to accelerate Guinness Nigeria’s growth trajectory by leveraging its expertise in manufacturing, supply chain management, and market penetration.
Omobola Johnson, Chair of Guinness Nigeria’s Board, described the partnership as a “winning combination”:
“This brings together Tolaram’s deep expertise in manufacturing and distribution, and Diageo’s exceptional capabilities in brand building and innovation. Guinness Nigeria is well placed for further growth.”
Adebayo Alli, Managing Director/CEO of Guinness Nigeria, echoed this sentiment:
“We are excited to work alongside Tolaram and remain committed to building a sustainable business aligned with our values.”
Tolaram Africa’s Managing Director, Haresh Aswani, added:
“Guinness Nigeria’s legacy and strong consumer loyalty make this an exceptional addition to our ecosystem. We look forward to delivering innovation and value across the market.”
Diageo’s Exit Mirrors Broader Trends
Diageo’s decision to divest its controlling stake reflects a larger trend among multinationals in Nigeria. In recent years, companies like Unilever Plc, Procter & Gamble Co., GSK Plc, and Sanofi have either scaled back operations or exited the Nigerian market due to economic pressures, currency volatility, and evolving regulatory challenges.
However, Diageo isn’t stepping away entirely. The company will continue to lead the brand and marketing strategy for Guinness in Nigeria through its long-term licensing agreement, ensuring that the core brand identity and innovation roadmap remain intact.
With this divestment, Diageo has joined the likes of other multinationals like Unilever Plc, Procter & Gamble Co., GSK Plc and Sanofi that have recently announced that they are either cutting back on their exposure or exiting the country.
