Africa’s mergers and acquisitions space continues to witness significant cross country transactions as South Africa’s largest food company, Tiger Brands formalises its $183 million acquisition of Nigeria’s Dangote Flour Mills.
The $183 million buy out gives Tiger Brands a 63% stake in the company.The deal recently received approval by the Nigerian Stock Exchange and will be Tiger Brands’ third and largest acquisition in West Africa in line with the company’s strategic focus on developing its Africa footprint.
“We are especially pleased with the successful conclusion of this transaction. We believe it will present growth opportunities for both organisations and be mutually beneficial. Dangote Flour Mills will add significant scale to Tiger Brands’ existing Nigerian businesses,” said Tiger Brands’ C.E.O., Mr Matlare following the formalization of the deal.
Last year, Tiger Brands acquired a 49% stake in Nigeria’s UAC Foods.
Dangote Flour Mills’ share price moved up 5% following the deal.
For more on Nigeria’s Dangote Group, read “How Africa’s richest man, Aliko Dangote plans to make Dangote Cement the largest cement company in the world.”
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