With the completion of a transaction considered one of the most important strategic mergers in Nigeria, Honeywell Group is on the verge of expanding its investment portfolio following the approval of the acquisition of one of its subsidiaries. by Flour Mills of Nigeria.
Recall that the company has announced that Flour Mills, a major player in the Nigerian consumer goods industry, will acquire a 71.69% stake in Honeywell Flour Mills for a total enterprise value of N80 billion. The deal, which was recently cleared by relevant regulators, is now poised to create the world’s largest consumer goods company.
What do they say?
According to Honeywell Group Managing Director, Mr. Obafemi Otudeko, who expressed his optimism about the impact the merger will have on the two companies, the FMCG industry and the Nigerian economy as a whole, “We are pleased to “having obtained regulatory approvals for the transaction, which will create a business that will better serve Nigerian consumers. As we entrust Flour Mills of Nigeria to build on the strong legacy of Honeywell Flour Mills, we will work closely working with them to ensure a seamless integration, preparing the combined company for a prosperous future.We thank NGX, the FCCCPC and the SEC for their support and will continue to work closely with them in our various activities and investments to realize the national vision of building a resilient economy through successful business.
In the same vein, FMN Group Chief Executive Boye Olusanya said, “We are delighted that the approvals have been received and we are all ready to begin execution of this historic transaction which would have a positive impact on the Food Security Architecture and Nigeria’s Global Competitiveness.
Why is this important right now?
Both companies play an important role in the consumer goods industry and with the approval of this merger, the combined company will naturally be an important source of food on the continent and further strengthen the Nigerian government’s food security agenda.
·Following the launch of the African Continental Free Trade Area (AfCFTA), the newly merged company will help boost international business activities in Nigeria, particularly by increasing the value of our exports in food production.
Likewise, a variety of food consumables provide consumers with various options to choose from and make the company a one-stop shop for consumer enjoyments, with combined capabilities aimed at reducing production costs and offering competitive prices.
On the future of the Honeywell group:
Honeywell Group, the investment company behind the transaction, has a track record of operating and investing in leading Nigerian companies, giving them a deep understanding of the market and what it takes to build successful, sustainable businesses that create financial and social value. -hand.
The company has a network of partners in key sectors, including technology, telecommunications, real estate, energy, infrastructure and financial services; as well as distinctive business abilities. Over the years, the company has been known to identify and capitalize on attractive opportunities, which has earned it the status of early investors in various industries. A prime example is its early investment in telecommunications in the 2000s with the advent of GSM in Nigeria.
Obafemi Otudeko, while praising regulators for closing the processes, said the company is looking to the future. “Honeywell Group is poised to continue to refine and grow its investment portfolio. We are strongly positioned to expand our business in key growth areas through strategic investments and partnerships. We remain committed to building businesses that leave a lasting impact and we look forward to sharing our future plans. »