AFTER receiving regulatory approvals, Flour Mills of Nigeria Plc. completed the acquisition of a 71.69 percent stake in Honeywell Flour Mills Plc. (HFMP) and a 5.06 percent stake in HFMP held by First Bank of Nigeria Limited.
The Federal Competition and Consumer Protection Commission, Nigerian Exchange Limited, and the Securities and Exchange Commission of Nigeria all authorized the deal.
On November 22, 2021, FMN and Honeywell Group announced a planned merger that would combine two businesses with similar ambitions in order to build a more resilient national champion in the Nigerian food industry. At an equity price of N4.20 per share, Honeywell Group sold a 71.69 percent stake in HFMP to FMN.
FMN will be able to expand its footprint across Nigeria, increase manufacturing capacity, and developing synergies in order to provide better products to consumers as a result of this acquisition.
Honeywell Group also sold a 71.69 percent stake in HFMP to FMN for $80 billion in total enterprise value.
“We are delighted that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness,” Mr. Boye Olusanya, Group Managing Director, FMN said.
“We commend and thank all regulatory and approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”
He further noted, “Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa. Together, Flour Mills of Nigeria and Honeywell Flour Mills will be able to achieve rapid growth while maintaining high-quality products serving the evolving needs of our consumers. The acquisition will further serve as a catalyst for an even stronger stream of innovation that is focused on local content offerings, enabling our customers across the nation to seamlessly benefit from improved access to a wider product range and a robust pan-Nigerian distribution network.”
Honeywell’s Group Managing Director, Mr. Obafemi Otudeko, said the transaction “will create a business that further serves Nigerian consumers. As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure seamless integration, setting the combined company up for a successful future.”
