Johannesburg - Consumer goods firm Tiger Brands [JSE:TBS]
said on Tuesday Nigerian authorities had cleared its R1.5bn purchase of a
majority stake in Nigeria’s Dangote Flour Mills.
The deal is Tiger Brands' third and the biggest yet in
Nigeria, Africa’s most populous country and second-largest economy which is
seen as a growth area for consumer and food products.
“Tiger Brands believes, particularly for consumer goods,
that the potential of the Nigerian market is significant,” the company said in
Tiger Brands will acquire just over 63% of Dangote Flour, a
flour and pasta maker owned by billionaire industrialist Aliko Dangote.
Dangote will retain a strategic interest of 10% in Dangote
Flour Mills for a minimum period of five years‚ with Aliko Dangote continuing
as chairperson of Dangote Flour Mills.
“Tiger Brands views its strategic relationships with both the Dangote and UAC groups as crucial to its continuing success within the Nigerian FMCG sector‚” Peter Matlare‚ CEO of Tiger Brands said.
Tiger Brands acquired a 49% joint venture interest in UAC of Nigeria Plc’s Food and Beverage businesses in May 2011.
Tiger Brands’ operations on the balance of the African
continent are based in Nigeria‚ Cameroon‚ Kenya‚ Ethiopia and Zimbabwe.
The company is the second largest flour milling company in
Nigeria with a market share of about 30%. It also has about 40% of the
country’s pasta market.
Tiger Brands has been ramping up its expansion in fast-growing African markets and last year increased its footprint outside its home base with acquisitions in Nigeria and Ethiopia.