Suntory Beverage & Food Limited (SBF) is in the process of completing its global acquisition of the bottling and distribution rights of GSK Consumer Nigeria’s Lucozade and Ribena soft drinks brands.
In 2014, the Japanese beverage company had acquired the soft drinks brands from the pharmaceutical giant GSK. However, the pharma company retained the bottling and distribution rights in Nigeria under a trading agreement, reported just-drinks.com.
Now, Suntory has made a non-binding offer to GSK Nigeria to acquire the remaining drinks operations.
The financial details of the proposed offer have not been disclosed.
A spokesperson was quoted by the website as saying: "This new proposal is for Suntory to acquire the bottling and distribution infrastructure in Nigeria."
The proposed offer also includes GSK Nigeria's Agbara manufacturing plant.
The pharma company's board is looking at the offer and is expected to arrive at a decision following consultation with professional advisers, reported Naija247news.com.
The potential deal would require shareholders and regulatory approvals.
Until the completion of the sale process, the drinks business would continue to be owned by GSK Nigeria.
Recently, Beam Suntory had acquired 50% equity stake in South Africa-based spirits distributor ABV Brands Proprietary from Cyprus-based FIX Wines & Spirits. The remaining stake would be retained with ABV Brands' co-founders and management team. Under the deal, ABV Brands would continue to retain its focus on the growth and distribution of its entire current spirits portfolio in South Africa.
The transaction was considered as an extension of the strategic alliance in order to bolster growth potential through further investments in sales and marketing segments so as to enhance its distribution capabilities in order to expand its customer base.
