The Flour Mills of Nigeria and Honeywell Group Limited have announced in a statement on Monday that the two companies have signed an agreement to merge.
Why it matters?
To ensure this partnership, Honeywell Group Limited would release a valuation of N80bn to Flour Mill of Nigeria. Flour Mill of Nigeria would also acquire Honeywell’s 5.06 percent asset in First Bank of Nigeria. The statement reads, “Consequently, upon completion of the acquisition, and subject to obtaining all requisite regulatory approvals, FMN is set to hold a circa 76.75 per cent equity interest in Honeywell Flour Mills.”
“The complementary 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.”
The Group Managing Director of Flour Mills of Nigeria, Omoboyede Olusanya, said, “The proposed transaction is aligned with our vision not only to be an industry leader but a national champion for Nigeria. We believe that this will create an opportunity to combine the unique talents of two robust businesses.”