In a landmark move set to redefine the Nigerian beverage landscape, Tolaram has struck a deal to acquire Diageo’s 58.02% stake in Guinness Nigeria Plc. This monumental transaction, announced today, paves the way for Tolaram to assume a commanding presence in one of Africa’s most vibrant markets. The agreement includes long-term license and royalty deals ensuring the continued production of the beloved Guinness brand and Diageo’s ready-to-drink and mainstream spirits. The completion of this transaction is anticipated in Fiscal 2025, pending regulatory approvals.
This acquisition does not mean Diageo is pulling out of Nigeria. On the contrary, Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria on a long-term basis. This strategic move ensures that Diageo’s renowned brand-building expertise and innovation will continue to propel Guinness Nigeria’s growth, now under the stewardship of Tolaram.
Tolaram, a powerhouse in the consumer goods sector with over fifty years of operations in Africa, has forged significant partnerships with leading multinationals. The company’s extensive experience and robust infrastructure make it a formidable player in the market, and this acquisition marks its most ambitious foray yet into Nigeria’s beverage industry.
Omobola Johnson, the esteemed Board Chair of Guinness Nigeria, expressed her excitement about this pivotal development. “Today’s announcement signifies a transformative opportunity for Guinness Nigeria. The synergy between Tolaram’s manufacturing and distribution prowess and Diageo’s unrivaled branding and innovation capabilities is a winning combination. This partnership sets the stage for Guinness Nigeria to reach new heights in growth and market presence.”
Echoing this sentiment, Adebayo Alli, Managing Director and CEO of Guinness Nigeria, remarked, “This moment is a milestone for Guinness Nigeria, our dedicated employees, and loyal customers. Partnering with Tolaram, a respected giant in Africa’s consumer goods industry, aligns perfectly with our values and ambitions. Together, we will build an enduring and sustainable business that continues to delight consumers.”
Haresh Aswani, Managing Director of Tolaram Africa, highlighted the strategic importance of the acquisition. “Welcoming Guinness Nigeria, a company with a storied legacy and robust consumer loyalty, into the Tolaram family is a thrilling development. This acquisition not only strengthens our footprint in Nigeria but also leverages our combined strengths to drive innovation and deliver unparalleled value to our customers and shareholders.”
Post-acquisition, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd., ensuring transparency and continued investor confidence. In compliance with local regulatory requirements, Tolaram intends to launch a mandatory takeover offer following the completion of the transaction.
This deal heralds a new era for Guinness Nigeria, characterized by enhanced growth, innovation, and market expansion. The collaboration between Tolaram’s operational expertise and Diageo’s strategic brand guidance promises to create a powerhouse poised to dominate the Nigerian beverage sector.
