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Guinness Sells Majority Stakes in Nigeria

In a historic agreement set to reshape Nigeria’s beverage industry, Tolaram has agreed to purchase Diageo’s 58.02% stake in Guinness Nigeria Plc. This announcement was made in a press release on the Nigerian Exchange (NGX).

The sale is part of a trend of major multinational organizations exiting the country, citing tough economic challenges. The purchase, expected to be completed in fiscal 2025 pending regulatory clearances, will also see Tolaram enter into long-term license and royalty agreements to continue producing the iconic Guinness brand alongside Diageo’s ready-to-drink and mainstream spirits locally.

Based on its current share price of N50.5 per share, Guinness has a market value of N110.7 billion, suggesting the acquisition could surpass N64 billion. According to the company, this move aligns with Diageo’s strategic vision to retain brand influence while leveraging Tolaram’s extensive distribution and manufacturing capabilities.

The acquisition also marks a significant expansion of Tolaram’s footprint in Nigeria, promising enhanced innovation and value delivery to customers and shareholders. Omobola Johnson, Board Chair of Guinness Nigeria, reacted positively to the deal. “This partnership brings together Tolaram’s deep expertise in manufacturing and distribution with Diageo’s exceptional brand-building and innovation capabilities. It positions Guinness Nigeria for robust growth in this dynamic market,” she said.

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