By By Muminat Ajide
Tolaram, a Singaporean business conglomerate, is set to acquire Diageo’s stake in Guinness, a brewery company. This move comes amid Guiness’s announcement of exiting Nigeria after 75 years, due to economic challenges.
The agreement, disclosed in a statement on June 11, stipulates Tolaram’s acquisition of Diageo’s 58.02% shareholding in Guinness Nigeria. Additionally, the deal includes long-term license and royalty agreements, ensuring the continued production of the Guinness brand and locally manufactured Diageo ready-to-drink and mainstream spirits brands. The completion of the transaction is expected in Fiscal 2025, contingent upon obtaining necessary regulatory approvals in Nigeria.
Despite forfeiting its stake, Diageo reaffirms its commitment to Nigeria by retaining ownership of the Guinness brand, which will be licensed to Guinness Nigeria for a long time. This strategic partnership between Tolaram and Diageo aims to facilitate the next phase of growth and development for Guinness Nigeria under Tolaram’s guidance.
President Bola Tinubu has applauded Tolaram for its decision to acquire Diageo’s stake in Guinness, praising the company’s long-term vision for doing business in Nigeria. Tinubu welcomes Tolaram to Nigeria’s beverage sector and expresses hope for the group’s continued success.
Tolaram has been doing business in Nigeria in the last 50 years,” the president said.
“In choosing to expand its investment footprints in Nigeria, Tolaram has demonstrated strong faith and confidence in Nigeria’s economy.” He stated.
Tinubu reassures investors and businesses of the government’s commitment to improving the operating environment, ensuring transparency and conducive conditions for investment. He cites ongoing reforms and interventions in the economic and financial sectors as evidence of Nigeria’s dedication to sustained growth and profitability for investors.
Omobola Johnson, the Board Chair of Guinness Nigeria, views the acquisition as a significant opportunity for the company’s future growth. She highlights the synergy between Tolaram’s expertise in manufacturing and distribution and Diageo’s skill in brand building and innovation.
Adebayo Alli, the Managing Director/Chief Executive Officer of Guinness Nigeria, reflects Johnson’s opinion, expressing excitement about the collaboration with Tolaram. He emphasizes Tolaram’s status as one of Africa’s largest and most respected consumer goods companies, noting their alignment with Guinness Nigeria’s values and commitment to sustainable business practices.
Haresh Aswani, Managing Director, Tolaram Africa, 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.”
