FLOUR Mills of Nigeria Plc (FMN) has obtained all necessary regulatory approvals to acquire a 71.69 percent stake in Honeywell Flour Mills Plc, a former Honeywell Group portfolio company.
The company also received approval for First Bank of Nigeria Limited’s 5.06 percent stake in Honeywell Flour Mills Plc.
According to a report made available to journalists, the acquisition has been approved by all relevant regulators, including the Federal Competition and Consumer Protection Commission (FCCPC), the Nigerian Exchange Limited (NGX), and the Securities and Exchange Commission of Nigeria (SEC).
On November 22, 2021, they announced their agreement to the transaction, which would bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry.
The acquisition allows the FMN to expand its reach throughout Nigeria, increase manufacturing capacity, and create synergies to deliver better products to consumers.
Honeywell Group sold a 71.69 percent stake in Honeywell Flour Mills Plc to Flour Mills of Nigeria for a total enterprise value of $80 billion.
Given FMN’s parallel negotiation for both stakes, which resulted in the agreements being executed, the transaction was completed at the final equity price per share of N4.20.
Mr Boye Olusanya, Group Managing Director of FMN, stated, “We are delighted that approvals have been received, and we are all set to begin execution of this landmark transaction that will positively impact Nigeria’s food security architecture and overall competitiveness.”
We congratulate and thank all regulatory and approving bodies – FCCPC, SEC, and NGX – for their support of this historic vision.”
“Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa,” he added. Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the Nigerian market.
“The acquisition will also serve as a catalyst for an even stronger stream of innovation focused on local content offerings, allowing our customers across the country to benefit from improved access to a broader product range and a robust pan-Nigerian distribution network.”
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