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UPDATE 2-Nigerian regulators approve Tiger Brands DFM deal
September 25, 2012 / 6:01 AM / in 5 years

UPDATE 2-Nigerian regulators approve Tiger Brands DFM deal

(Adds Aliko Dangote remaining as chairman)

JOHANNESBURG, Sept 25 (Reuters) - South African consumer goods firm Tiger Brands said Nigerian authorities had cleared its 1.5 billion rand ($181.98 million) purchase of a majority stake in Nigeria’s Dangote Flour Mills.

The deal is Tiger Brands’ third and its biggest yet in Nigeria, Africa’s most populous country and second-largest economy which is seen as a growth area for consumer and food products.

“Tiger Brands believes, particularly for consumer goods, that the potential of the Nigerian market is significant,” the company said in a statement on Tuesday.

Tiger Brands will acquire just over 63 percent of Dangote Flour, a flour and pasta maker owned by billionaire industrialist Aliko Dangote.

His holding firm Dangote Industries Limited will retain a 10 percent stake in the flour miller after the purchase and keep Aliko Dangote as chairman.

The company is the second largest flour milling company in Nigeria with a market share of about 30 percent. It also has about 40 percent of the country’s pasta market.

Tiger Brands has been ramping up its expansion in fast-growing African markets and last year increased its footprint outside its home base with acquisitions in Nigeria and Ethiopia.

Dangote Flour shares rose 4.95 percent to 8.48 naira at 1130 GMT, valuing the company at $256 million, and Tiger Brands shares were up 0.5 percent to 270.90 rand. ($1 = 8.24 South African rand) ($1 = 157.80 Nigerian nairas) (Reporting by Ed Stoddard; Additional reporting by Oludare Mayowa in Lagos; Editing by Hans-Juergen Peters)

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