Nigerian food company Dangote Flour Mills has struck a deal to sell parts of its noodle business to local peer De United Foods Industries.
The transaction covers production assets in Calabar, a city in south-eastern Nigeria and in Ikorodu, a city 30 kilometres from Lagos, the country’s capital.
Dangote Flour Mills’ business takes in flour, pasta and noodles. The company reportedly wants to focus more on flour and pasta.
De United Foods Industries is part of Nigeria’s Dufil Prima Foods, a noodle, pasta, oils and snacks venture set up Singapore-based conglomerate Tolaram and Indonesian agri-food giant Salim Group, which controls Indofood, the south-east Asian country’s largest food company.
Dufil Prima Foods, set up in 2001, has three plants in Nigeria, located in Kaduna, Ota and Port Harcourt. The company also manufactures flour and seasonings. It markets noodles in western Africa under Indofood’s flagship brand Indomie, as well as selling Power pasta and Minimie snacks.