Guinness announces plan to leave Nigeria after 75 years

Guinness has announced it will exit the Nigerian market and sell off its controlling shares to Singaporean conglomerate Tolaram Group on Tuesday, June 11.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 currencys 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 Diageos 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, Guinnesss legal director.Diageo will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term. The post Guinness announces plan to leave Nigeria after 75 years appeared first on Linda Ikeji Blog.