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.
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.