Dangote’s Giant Food Conglomerate: What To Expect
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News - July 13, 2023

Dangote’s Giant Food Conglomerate: What To Expect

Nigerian billionaire, Aliko Dangote’s Sugar Refinery Plc, Nascon Allied Industries Plc and Rice Limited recently unveiled plans to establish a giant food conglomerate. 

This comes as the leading integrated sugar business majority owned by Dangote proposed a merger with Nascon Allied Industries Plc and Dangote Rice Limited.

The merger is among the key matters to be discussed during the upcoming Board of Directors meeting scheduled for Friday, 28th of July 2023. This was contained in a statement released by Dangote Sugar Refinery Plc by the Company’s Secretary and Legal Adviser, Mrs Temitope Hassan.

At the meeting, the board of directors will review the terms and potential benefits of the merger, anticipating a significant impact on the Nigerian sugar industry and the overall market.

What to Expect from Dangote’s proposed merger

This potential merger seeks to create a giant food conglomerate with diverse products, including sugar, rice, salt, vegetable oil, tomato paste, seasoning, and savory products.

Also, the strategic move aims to consolidate the resources and operations of the three companies, enhancing market position, operational efficiency, and profitability.

Upon approval, the merger could create a significant shift in the Nigerian foods and consumer goods industry, as the consolidation of these businesses is expected to reshape the market landscape and create new growth opportunities.

The proposed merger has attracted positive reactions from investors on the Nigerian Exchange as the shares of both Dangote Sugar and Nascon experienced a surge in demand.

Shares of Dangote Sugar and Nascon were trading at $0.0385 and $0.0329, respectively, representing a 9.94 per cent and 9.91 per cent increase from their opening prices this morning.

This share price surge has resulted in a market capitalization of $425.7 million for Dangote Sugar and $79.3 million for Nascon.

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