South African food company Tiger Brands has completed the acquisition of 63.4% stake in Dangote Flour Mills, a leading Nigerian manufacturer of pasta and flour, for ZAR1.5bn ($182m).
This development comes after the Nigerian authorities cleared the purchase agreement. In May 2012, Tiger Brands announced that it was in talks with Dangote Industries to acquire a stake in Dangote Flour Mills.
Tiger Brands will now hold 63.4% of Dangote Flour, while Dangote Industries will retain a 10% stake in the flour miller.
Headquartered in Lagos, Nigeria, Dangote Flour Mills is a publicly-listed firm involved in milling, processing and marketing branded flour products.
Dangote Flour Mills has a milling capacity of nearly 5,000 tons per day and offers confectionery flour, wheat flour, bread flour, pasta semolina, spaghetti and macaroni under the Dangote brand.
Tiger Brands, which produces bread, breakfast cereal and energy drinks, has been actively seeking to expand in Nigeria. In April 2010, it bought biscuit company Deli Foods Nigeria and in the same year it acquired a 49% equity stake in UAC Foods.
Dangote Industries, which is the personal investment vehicle of Nigerian businessman Aliko Dangote, also owns 90% of Dangote Cement, a leading producer of cement in Africa.
