Wilmar International and TropicalGeneral Investments (TGI) Group have entered into definitive agreements to combine their respective operating businesses in Nigeria and the Republic of Benin in a landmark 50:50 joint venture aimed at building a fully integrated food and agribusiness platform across West Africa.
The transaction will bring together a broad portfolio of complementary businesses across the food value chain, from farming to processing and distribution. The combined platform will serve an addressable market estimated at approximately US$12 billion across the focus categories in Nigeria and the Republic of Benin.
Under the agreement, both companies will contribute their existing operating food businesses and brands into the joint venture, which will be jointly owned on an equal basis by Wilmar and TGI Group. The companies said the objective is to improve access to affordable, high-quality food products across West Africa by combining global expertise with established local manufacturing and distribution capabilities.
Commenting on the transaction, Mr Kuok Khoon Hong, Chairman& CEO of Wilmar, in a joint statement said, “Nigeria and theRepublic of Benin are key consumer markets in Africa, supportedby a population of more than 260 million, and sometimes experience structural deficits in both food production and distribution. The combination of Wilmar’s integrated palm oil and specialty fats capability and its global scale in food staples & consumer goods with TGI Group’s manufacturing scale, established consumer brands and nationwide distribution platform,creates a uniquely positioned business to serve African consumers and to contribute to the long-term development of the region.”
