Unveiling the Hidden Details: Tolaram's Acquisition of Diageo's Stake in Guinness Nigeria Revealed

Unreported information on Tolaram's purchase of Diageo's Guinness Nigeria shares

Tolaram Group Acquires Diageo's 58% Stake in Guinness Nigeria: Singapore-based multinational buys majority shares, as Diageo refocuses strategy, sells African breweries, and invests in Irish facilities, debunking rumors of complete Nigeria exit.

Tolaram Group, a multinational company based in Singapore, has reached an agreement to purchase Diageo's 58.02 percent stake in Guinness Nigeria Plc.

Guinness released a news release on the Nigerian Exchange Group, or NGX, announcing this development.

Diageo sold the Indonesian company Tolaram the majority of its shares in Guinness Nigeria, pursuing a business approach it had previously employed in Cameroon, Ethiopia, Mauritius, South Africa, and Namibia.

Diageo has been honing its strategy to increase profitability, with beer sales making up just 15% of its global turnover and the Guinness brand accounting for 16% of its earnings.

Diageo sold its Meta Abo brewery to Castel in Ethiopia in January 2022. Later that year, in July, it allowed Castel to produce the Guinness brand after selling its Cameroonian brewery to Castel for $460 million, a deal akin to that which it had with Phoenix Beverages in Mauritius.

Diageo made an investment in its brewing capacity in Ireland, investing $200 million in a second brewing facility, while selling off its breweries in Africa. The goal of this investment was to provide Guinness more room at its Dublin headquarters.

Media stories that purport the multinational is pulling out of Nigeria entirely are inaccurate.

Guinness said in a statement on Tuesday, June 11 that Diageo will continue to be present in Nigeria.

Diageo sold its Meta Abo brewery to Castel in Ethiopia in January 2022. Later that year, in July, it allowed Castel to produce the Guinness brand after selling its Cameroonian brewery to Castel for $460 million, a deal akin to that which it had with Phoenix Beverages in Mauritius.