Wilmar International has formed an equally split joint venture with Tropical General Investments Group to combine their operations in Nigeria and the Republic of Benin.
In a statement yesterday (2 June), the Singapore-based agri-food group said the partners have signed definitive agreements to place a “portfolio of complementary operating businesses and brands” into a new jointly owned holding company.
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The JV, to be headquartered in Singapore, will include assets spanning agriculture, oil-palm plantations and nuts, as well as rice, culinary products, food manufacturing and distribution.
Brands in the combined portfolio include Mamador and Devon King’s in edible oils and consumer food products, and also in oils Golden Terra, a spokesperson for Wilmar confirmed with Just Food.
Terra and Tastemaker fall into the culinary category, joined by Big Bull in rice and Peppe Terra cooking pastes.
In the statement, Kuok Khoon Hong, Wilmar chairman and CEO, said Nigeria and the Republic of Benin are “key consumer markets in Africa” and the JV is “uniquely positioned” to cater to a market with an addressable value of more than $12bn.
While the primary focus will be Nigeria and the bordering Republic of Benin, the “business will also explore opportunities to serve selected regional export markets where appropriate”, the spokesperson told Just Food, declining to disclose the combined revenues of the venture.
The partnership also includes margarine, spreads and seasonings, the spokesperson said.
Wilmar’s Africa head Santosh Pillai described the tie-up as a “compelling strategic fit” for the group.
Wilmar said it will contribute its upstream palm-oil, speciality fats and food-staples operations to the venture, while TGI Group will bring its manufacturing footprint, local brands and distribution network in West Africa.
“The upstream agriculture activities are oil-palm plantations and palm oil milling activities in the Cross Rivers State of Nigeria,” the spokesperson said.
“The manufacturing footprint across several locations covers a range of food and consumer products including edible oils, margarine and spreads, rice, seasonings cubes, cooking and culinary paste and other packaged food products. These are supported by extensive route-to-market capabilities across Nigeria.”
Completion of the transaction is subject to customary conditions and is expected to close before the end of 2026.
Cornelis Vink, the founder and chairman of Nigeria-headquartered TGI, said: “For more than four decades, TGI Group has built a leading position in Nigerian food manufacturing and distribution.
“The combination with Wilmar’s Nigerian businesses brings together two highly complementary platforms, built on delivering high quality, locally manufactured food products across the sub region.”
The agreement follows Wilmar’s move last year to expand its edible-oils presence in Nigeria.
Wilmar agreed to acquire UK consumer goods group PZ Cussons’ 50% stake in their Nigerian edible-oils joint venture for $70m.
The Singapore group also agreed to buy more shares in the Fortune edible-oils maker from Indian conglomerate Adani Enterprises.
