Guinness has joined a long list of
multinationals, like GlaxoSmithKline and Microsoft, that have left
Nigeria, citing the harsh economic climate in the country. The brewery
company recorded a staggering N61.9 billion loss after tax between July
2023 and March 2024, just a few months after Mr Tinubu floated the naira
in an effort to unify the currency’s value on the official and parallel
foreign exchange markets.
Guinness Nigeria’s N61.7 billion loss after
tax in Q3 was a 1,000 percent decrease from the N5.9 billion profit
generated in the same period last year leading Diageo, Guinness’ parent
company, to sell its 58.02 per cent majority stake to the Singaporean
group.“Under the terms of an agreement signed today, 11 June 2024,
Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria
royalty agreements for the continued production of the Guinness brand
and its locally manufactured Diageo ready-to-drink and mainstream
spirits brands,” the company said in a statement Tuesday.
“The
transaction is expected to be completed during fiscal 2025, subject to
obtaining the requisite regulatory approvals in Nigeria,” said the
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.”
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