Olam to buy Nigerian flour and pasta maker for $491m

Agri and food giant Olam International has submitted a binding offer to fully acquire a Nigerian flour and pasta maker for 130 billion naira (S$491 million).

The proposed deal would include five flour and pasta manufacturing facilities and logistics capabilities, including access to the ports of Apapa and Calabar.

It is part of Olam's strategy to bolster its portfolio by investing in proven businesses where it has gained market-leading positions, the firm said yesterday.

Olam operates wheat milling and flour and pasta manufacturing facilities in Nigeria and sub-Saharan Africa.

Mr K.C. Suresh, managing director and chief executive of Olam Grains and Animal Feed, said the acquisition of Dangote Flour Mills will double its capacity in the country and "is evidence of our long-term commitment to the Nigerian economy".

"Since 2010, Olam has invested in and grown a world-class wheat milling franchise with a strong regional footprint across four countries in sub-Saharan Africa," he added.

"Bringing together Olam and Dangote would provide enhanced manufacturing capacity and create synergies with our existing business to deliver improved products."

The transaction is subject to the backing of Dangote shareholders and various regulatory approvals.

The firm will be delisted from the Nigerian Stock Exchange once the deal closes.

A version of this article appeared in the print edition of The Straits Times on April 25, 2019, with the headline 'Olam to buy Nigerian flour and pasta maker for $491m'. Print Edition | Subscribe