Wilmar International has announced its acquisition of British consumer goods company PZ Cussons’ 50% equity stake in their Nigerian edible oils joint venture (JV) for a cash consideration of $70 million.
As a result of this deal, Wilmar will assume full ownership of the joint venture, PZ Wilmar. The company intends to onboard a local partner to further strengthen its oils business, as confirmed in a joint statement.
Additionally, Wilmar plans to rebrand PZ Wilmar after the transaction’s completion, which will take place in the final quarter of 2025, pending necessary approvals.
Commenting on this strategic move, Wilmar’s Chairman and CEO Kuok Khoon Hong stated, “We are bullish on the long term potential of Nigeria’s palm oil sector, given its large and growing population and suitability for palm cultivation.”
He emphasized that the Nigerian market presents a “significant opportunity for growth in food and nutrition” with a consumer base exceeding 200 million people.
Formed in 2010 as a partnership between Wilmar and PZ Cussons, PZ Wilmar has established itself as one of the “largest sustainable palm oil businesses in Nigeria.”
The joint venture’s edible cooking oils are marketed under the Mamador and Devon King’s brands throughout Nigeria.
Moreover, it has minority stakes in two palm oil plantations, while Wilmar retains majority stakes in these operations.
Wilmar, listed on the Singapore Exchange, aims to enhance its upstream palm plantation and downstream businesses across Nigeria.
In a filing to the London Stock Exchange, PZ Cussons described this deal as part of its “portfolio transformation.” Proceeds from the sale will be allocated towards reducing company debt.
PZ Cussons CEO Jonathan Myers remarked, “We are exiting a non-core category, reducing the risk associated with our presence in Nigeria, and materially strengthening our balance sheet.”
Myers further stated that the goal is to “continue transforming PZ Cussons into a business with stronger brands in a more focused portfolio.”
In recent years, the UK-based group has divested multiple food businesses across various markets.
These include the 2021 sale of the Five:AM Australian yogurt business to Barambah Organics and the 2020 sale of its Nigerian dairy business, Nutricima, to a FrieslandCampina affiliate.
In March, Adani Wilmar, a joint venture between India’s Adani Group and Wilmar, agreed to acquire GD Foods Manufacturing, expanding its portfolio of value-added food products.
Earlier in January, Wilmar announced plans to acquire shares in Adani Wilmar from its partner Adani Enterprises, which is exiting the alliance.
Consequently, the Adani Wilmar venture will become a subsidiary of Wilmar. The company stated it “will explore opportunities to bring in strategic investors.”
