Home Business Flour Mills gets approval to acquire majority stake in Honeywell

Flour Mills gets approval to acquire majority stake in Honeywell

Flour Mills of Nigeria Plc. (FMN) has obtained regulatory approvals to acquire a 71.69% stake in Honeywell Flour Mills Plc (HFMP), formerly a portfolio company of Honeywell Group, and a 5.06% stake in HFMP held by First Bank of Nigeria Limited.

The acquisition was approved by the Federal Competition and Consumer Protection Commission (FCCPC), the Nigerian Exchange Limited (NGX) and the Securities and Exchange Commission of Nigeria (SEC).

An announcement was made on November 22, 2021, regarding the agreement to bring together two businesses with shared goals to create a more resilient national champion in the Nigerian foods industry.

This acquisition enables FMN to extend its reach across the country, provide enhanced manufacturing capacity and create synergies to deliver improved products to consumers.

At a total enterprise value of ₦80billion, Honeywell Group disposed a 71.69% stake in HFMP to FMN.

Given FMN’s parallel negotiation for both stakes, culminating in the agreements being executed, the
transaction was concluded at N4.20 being the final equity price per share.

Mr. Boye Olusanya, FMB Group Managing Director said they are delighted that the approvals have been received.

Olusanya assured all is set for execution of the landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness.

We commend and thank all regulatory and
approving bodies – FCCPC, SEC and NGX, for supporting this historic vision.”

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.”

Nigeria, and Africa as a whole, will benefit from the Group’s renewed focus on developing agricultural value chains and backward integration imperative.

This focus is further heightened by unfolding global events, and we are responding, among other initiatives, with the set-up of regional expansion platforms, ultimately geared towards improving food security and employment opportunities across Nigeria.

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