Lagos, June 11, 2024 – After operating in Nigeria for 74 years, Guinness is to leave Nigeria as it sells off its controlling shares in the company to a Singaporean conglomerate, Tolaram Group.
It announced the divestment on Tuesday which it attributed to harsh operating environment.
The brewery recorded N61.9 billion loss after tax between July 2023 and March 2024 just after president Bola Tinubu announced reforms in the foreign exchange market which led to steady depreciation of the Nigerian currency.
The depreciation of the naira has adversely affected the fortunes of many multinational companies in Nigeria.
“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.
Guinness said it would leave Nigeria next year and hand over to a third-party venture.
“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” the statement, signed by Abidemi Ademola, Guinness’s legal director, said. (GBN)
