Wilmar International is to acquire British consumer goods company PZ Cussons’ 50% equity stake in its Nigerian edible-oils joint venture (JV) for a cash consideration of $70m.
With the deal, Wilmar will own 100% of the JV PZ Wilmar but it plans to onboard a local partner for the oils business, a joint statement confirmed.
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Wilmar said PZ Wilmar’s name would be changed after the transaction’s completion, which is subject to approvals and expected in the final quarter of 2025.
Commenting on the deal, Wilmar chairman and CEO Kuok Khoon Hong said “we are bullish on the long term potential of Nigeria’s palm oil sector, given its large and growing population and suitability for palm cultivation”.
Hong said the Nigerian market “offers a significant opportunity for growth in food and nutrition” with over 200 million consumers.
Set up in 2010 between Wilmar and PZ Cussons, PZ Wilmar is described as one of the “largest sustainable palm oil business in Nigeria”.
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By GlobalDataThe JV’s edible cooking oils are sold under the Mamador and Devon King’s brands in Nigeria.
It also holds minority stakes in two palm oil plantations in the country, with the majority stakes being held by Wilmar.
Wilmar, a Singapore Exchange-listed business, intends to further develop its “upstream palm plantation and downstream businesses in Nigeria”.
PZ Cussons, in a filing on the London Stock Exchange, mentioned that the deal is part of its “portfolio transformation,” with proceeds from the sale going towards reducing debt.
Commenting on the sale of its stake to its JV partner, Jonathan Myers, CEO of PZ Cussons, said “we are exiting a non-core category, reducing the risk associated with our presence in Nigeria, and materially strengthening our balance sheet”.
The focus is “to continue transforming PZ Cussons into a business with stronger brands in a more focused portfolio”, Myers added.
In recent years, the UK-based group has sold multiple food businesses across various geographies.
These include the sale of Five:AM Australian yogurt business to Barambah Organics in 2021 and the 2020 sale of its Nigerian dairy business Nutricima to a FrieslandCampina affiliate.
In March, Adani Wilmar, a joint venture between India’s Adani Group and Wilmar, agreed to acquire GD Foods Manufacturing to expand its value-added food products portfolio.
In January, Wilmar announced plans to buy shares in Adani Wilmar from its partner Adani Enterprises, which is exiting the alliance.
The Adani Wilmar venture will become a subsidiary of Wilmar, which said it “will explore opportunities to bring in strategic investors”.
