Tolaram acquires Diageo’s stake in Guinness Nigeria

Tolaram has announced its acquisition of Diageo’s 58.02% shareholding in Guinness Nigeria Plc, under an agreement signed on June 11, 2024. The deal includes long-term license and royalty agreements for the continued production of the Guinness brand and Diageo’s locally manufactured ready-to-drink and mainstream spirits brands. The transaction is expected to be finalized during Fiscal 2025, pending regulatory approvals in Nigeria.

Diageo will maintain ownership of the Guinness brand, licensing it to Guinness Nigeria for long-term production, aiming to support the company’s next growth phase under Tolaram’s leadership. Tolaram, a prominent player in Africa’s consumer packaged goods sector with a strong history of joint ventures with multinational companies, is set to enhance Guinness Nigeria’s manufacturing and distribution capabilities.

Omobola Johnson, Board Chair of Guinness Nigeria, expressed optimism about the partnership, stating, “This collaboration combines Tolaram’s manufacturing and distribution expertise with Diageo’s brand-building and innovation prowess, positioning Guinness Nigeria for significant growth.”

Adebayo Alli, Managing Director/CEO of Guinness Nigeria, described the acquisition as a pivotal moment for the company. “We are excited to partner with Tolaram, a highly respected consumer goods company in Africa, and align with their values to build a sustainable business,” he said.

Haresh Aswani, Managing Director of Tolaram Africa, welcomed the integration of Guinness Nigeria into Tolaram’s portfolio. “This strategic move will expand our presence in the Nigerian market and leverage our combined strengths to foster innovation and deliver value to customers and shareholders,” Aswani remarked.

Despite the ownership change, Guinness Nigeria will remain listed on the Nigerian Exchange Ltd. Tolaram plans to initiate a mandatory takeover offer, in accordance with local laws, following regulatory approval.

Diageo, committed to Nigeria, will continue to drive the brand and marketing strategy for Guinness in partnership with Guinness Nigeria and Tolaram, ensuring the brand’s growth and innovation continue to thrive in the Nigerian market.