In a landmark deal that will reverberate across Nigeria’s beverage market, Singapore-based consumer group Tolaram agreed to acquire Diageo’s 58.02 per cent shareholding in Guinness Nigeria and enter into long-term licence and royalty agreements, the Nigerian brewer said in a statement on Tuesday.
The development is the latest in a streak of major multinationals leaving the country or divesting citing the harsh economic climate.
![Tolaram is acquiring Guinness Nigeria in a landmark deal](https://newscentral.africa/wp-content/uploads/MixCollage-11-Jun-2024-12-01-PM-9023-1024x614.webp)
Diageo, which makes Johnnie Walker Scotch and Smirnoff Vodka, would retain ownership of the Guinness brand, which it will license to Guinness Nigeria, along with locally manufactured Diageo ready-to-drink and mainstream spirits.
Guinness has a market capitalization of N110.7 billion based on its current share price of N50.5 which suggests the deal could be worth over N65 billion.
The announcement comes at a critical time for Guinness which recently declared a loss after tax of N61.7 billion.
The transaction is expected to be completed during the 2025 financial year subject to regulatory approvals in Nigeria.