PZ Cussons Plc has reached an agreement to sell its 50 per cent stake in PZ Wilmar Limited to its joint venture partner, Wilmar International Limited, for a cash consideration of $70 million.
This move marks PZ Cussons’ complete divestment from the Nigerian palm oil business it co-founded in 2010.
The transaction is contingent on regulatory approvals and is anticipated to conclude by the last quarter of 2025.
Upon finalisation, Wilmar International will assume full ownership of PZ Wilmar, the producer of well-known household cooking oil brands like Mamador and Devon King’s. A statement released on Wednesday, June 18, confirmed the definitive terms of the sale.
Jonathan Myers, Chief Executive Officer of PZ Cussons Plc, commented on the development, acknowledging the “long-term and rewarding partnership” with Wilmar.
He extended gratitude to Wilmar’s leadership and PZ Wilmar employees for their contributions, stating that PZ Wilmar is now “in the best possible hands to build further on its market-leading position, while PZ Cussons continues to invest in and grow its core business.”
Credit: Orbitas Finance
Singapore Exchange-listed agribusiness giant Wilmar, in turn, stated that acquiring the remaining stake in PZ Wilmar underscores its long-term commitment to Nigeria’s expanding food and agriculture sector.
Wilmar’s chairman and CEO, Kuok Hong, expressed confidence in “the long-term potential of Nigeria’s palm oil sector, given its large and growing population and suitability for palm cultivation.”
He emphasised that the Nigerian market’s “strong demographics, with more than 200 million consumers, offers a significant opportunity for growth in food and nutrition” and affirmed Wilmar’s intention to continue developing both upstream and downstream businesses in Nigeria.
Despite gaining full ownership, Wilmar also intends to seek a strong local partner to support its Nigerian operations post-acquisition.
PZ Wilmar was established in 2010 as a joint venture between PZ Cussons Plc and Wilmar International. It has since become one of Nigeria’s largest sustainable palm oil businesses, holding minority stakes in two palm plantations primarily owned by Wilmar.
While PZ Cussons Nigeria Plc, a subsidiary of PZ Cussons Plc, is not a shareholder in PZ Wilmar and remains unaffected by this transaction, PZ Cussons Plc confirmed that this exit allows it to refocus on its core portfolio of hygiene, baby, and beauty products.
