Guinness to Leave Nigeria After 75 Years – Check Out Why.
Guinness has declared its intention to leave the Nigerian market and sell its controlling shares to the Singaporean conglomerate Tolaram Group, effective Tuesday, June 11.
The company joins a growing list of multinationals, including GlaxoSmithKline and Microsoft, that have departed Nigeria, citing challenging economic conditions in the country.
The brewery company reported a significant N61.9 billion loss after tax between July 2023 and March 2024, following Mr. Tinubu’s decision to float the naira to unify its value across official and parallel foreign exchange markets.
Guinness Nigeria’s N61.7 billion loss after tax in Q3 represented a 1,000 percent decline from the N5.9 billion profit recorded in the same period the previous year. This drastic downturn led Diageo, Guinness’s parent company, to sell its 58.02 percent majority stake to the Singaporean group.
According to an agreement signed on June 11, 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria, including royalty agreements for the continued production of the Guinness brand and locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company stated on Tuesday.
“The transaction is expected to be finalized during fiscal 2025, pending the necessary regulatory approvals in Nigeria,” said a statement signed by Abidemi Ademola, Guinness’s legal director.
Diageo “will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.”