Guinness to Exit Nigerian Market, Sell Controlling Shares to Singapore's Tolaram Group

 In a significant business move, Guinness has announced its exit from the Nigerian market, selling its controlling shares to Singaporean conglomerate Tolaram Group as of Tuesday, June 11.

Joining other multinationals such as GlaxoSmithKline and Microsoft, Guinness cited Nigeria’s challenging economic environment as a key factor in its decision. The brewery company faced a massive post-tax loss of N61.9 billion between July 2023 and March 2024, following President Tinubu's decision to float the naira to unify its value on official and parallel foreign exchange markets.

Guinness Nigeria's N61.7 billion loss after tax in Q3 marked a drastic 1,000 percent decline from the N5.9 billion profit achieved in the same period last year. This financial downturn prompted Diageo, Guinness' parent company, to sell its 58.02 percent majority stake to Tolaram Group.

"Under the terms of an agreement signed today, June 11, 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria, along with royalty agreements for the continued production of the Guinness brand and locally manufactured Diageo ready-to-drink and mainstream spirits brands," the company stated.

The transaction is expected to be finalized during fiscal 2025, pending the necessary regulatory approvals in Nigeria, according to a statement signed by Abidemi Ademola, Guinness's legal director. Diageo will maintain ownership of the Guinness brand, licensing it to Guinness Nigeria for the long term.