SUNTORY Beverage & Food Limited has confirmed that Suntory Beverage & Food Asia Pacific, its subsidiary, has entered into an agreement to sell its subsidiary in Nigeria, Suntory Beverage & Food Nigeria, to Africa FMCG Distribution Ltd.
According to a statement by the company, the completion of the transaction was subject to receiving merger clearance from relevant regulatory authorities in Nigeria.
The statement reads in part; “The total consideration of the transaction is around USD14 million (USD 7 million each for the transfer of share and loan) with the sale expected to be completed in the second quarter of 2022.”
Kazuhiro Saito, CEO of SBF, said, “As part of our regular strategic portfolio review and considering the broad options in Nigeria to accelerate the growth of our brands, we have decided that it is best to launch a new operating model in Nigeria, leveraging the extensive distribution network, and the expertise in the local market that AFDL possesses.”
Subodh M Chanrai, Executive Chairman of Chanrai Summit Group, said that AFDL was happy to participate in the opportunity and partner with an industry giant like Suntory.
He reasserted the commitment of the group to local value addition and helping global brands to retain their presence in Nigeria, creating opportunities for all stakeholders in the country.
Anjan Patole, Managing Director of SBFN, added that the company was pleased with the outcome of the transaction.
“The sale of our beverage operations in Nigeria signifies a fantastic opportunity to leverage on Chanrai’s Group expertise to expand the business and talents of our people beyond our current potential. Their extensive global systems, agility to changing market needs with a focus on African consumers are all qualities that aligned with that of our business here,” he said.
The statement added that the sale agreement did not impact SBF’s other businesses in Africa.
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