LAGOS, NIGERIA — Flour Mills of Nigeria (FMN), the nation’s leading food and agricultural company, has completed its acquisition of a 76.75% stake in Honeywell Flour Mills PLC (HFMP), an affiliate of Honeywell Group Ltd., following regulatory approval, The Guardian reported May 3.
On Nov. 22, FMN announced that it had signed an agreement to acquire a 71.69% share in its milling rival at an estimated cost of NGN80 billion (US $193.7 million). Additionally, FMN announced an agreement with First Bank of Nigeria Ltd. to acquire the bank’s 5.06% equity in HFMP.
“We are delighted that approvals have been received and we are all set to begin execution of this landmark transaction that would positively impact Nigeria’s food security architecture and overall competitiveness,” said Boye Olusanya, group managing director, FMN.
FMN operates 17 modern manufacturing facilities in 12 states with production capabilities across grain milling, edible oil and sugar refining, agricultural inputs, and animal nutrition and protein segments.
FMN said its combination with HFMP would bring together two trusted brands and create a food business better positioned to benefit Nigeria’s growing population and leverage opportunities within the African Continental Free Trade Area.
“Our combined brands and businesses will mean an expansive scale of food production for both Nigeria and Africa,” Olusanya said. “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.”
Honeywell said in a World Grain article addressing the merger that the transaction “combines FMN’s market-leading offerings that include grain-based foods, sugar, starches, oils, spreads and breakfast cereals with HFMP’s market leading diverse and differentiated range of carbohydrate products.”