Wednesday, June 12, 2024 -Guinness has announced it will exit the Nigerian market and sell off its controlling shares to Singaporean conglomerate Tolaram Group on Tuesday, June 11.
Guinness has joined a long list of
multinationals, like GlaxoSmithKline and Microsoft, that have left Nigeria,
citing the harsh economic climate in the country.
The brewery company recorded a staggering
N61.9 billion loss after tax between July 2023 and March 2024, just a few
months after Mr Tinubu floated the naira in an effort to unify the currency’s
value on the official and parallel foreign exchange markets.
Guinness Nigeria's N61.7 billion loss after
tax in Q3 was a 1,000 percent decrease from the N5.9 billion profit generated
in the same period last year leading Diageo, Guinness’ parent company, to sell
its 58.02 per cent majority stake to the Singaporean group.
“Under the terms of an agreement signed
today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in
Guinness Nigeria royalty agreements for the continued production of the
Guinness brand and its locally manufactured Diageo ready-to-drink and
mainstream spirits brands,” the company said in a statement Tuesday.
“The transaction is expected to be completed
during fiscal 2025, subject to obtaining the requisite regulatory approvals in
Nigeria,” said the statement signed by Abidemi Ademola, Guinness’s legal
director.
Diageo “will retain ownership of the
Guinness brand, which will be licensed to Guinness Nigeria for the long term.”
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