Suntory Beverage & Food Limited (SBF), brand owners of Ribena and Lucozade, has agreed to sell its Nigerian subsidiary, Suntory Beverage & Food Nigeria (SBFN) to Africa FMCG Distribution Ltd (AFDL) for $14 million.
The completion of the transaction is subject to receiving merger clearance from relevant regulatory authorities in Nigeria. The total consideration of the $14 million sale transaction ($7 million each for the transfer of share and loan) is expected to be completed in the second quarter of 2022.
Speaking on the deal, Mr 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.”
On his part, Mr Subodh M Chanrai, Executive Chairman of Chanrai Summit Group said that AFDL is immensely happy to participate in this opportunity and partner with a global giant like Suntory.
He reasserted the commitment of the group to local value addition and to helping global brands retain their presence in Nigeria, creating opportunities for all stakeholders in the country.
