Honeywell Group Limited and Flour Mills of Nigeria Plc. have announced the signing of a merger agreement valued at ₦80 billion between Honeywell Flour Mills and FMN.
The proposal is said to be subject to regulatory approvals with Honeywell Group Limited transfering a 71.69 per cent stake to Flour Mills of Nigeria.
The merger was targeted at boosting their food production capacity.
Despite having a vast arable land, Nigeria’s food production capacity remains low to cater for its increasing population.
Dwelling on the objectives of the agreement, Obafemi Otudeko, Managing Director of Honeywell Group Limited, said, “Today’s announcement is in line with the evolution of Honeywell Group and our vision of creating value that transcends generations.
“For over two decades, we have supported Honeywell Flour Mills to build a strong business with a production capacity of 835,000 metric tonnes of food per annum.
“Following the transaction, Honeywell Group will be strongly positioned to consolidate and expand its investment activities, including as a partner of choice for investors in key growth sectors.”
Nigeria is ranked 131st out of 190 economies according to the World Bank’s 2020 ease of doing business report.
In a statement, Omoboyede Olusanya, CEO of Flour Mills of Nigeria, said, “We believe that this will create an opportunity to combine the unique talents of two robust businesses.
“We will have a better-rounded and more comprehensive skill set available to us as a combined diversified food business, thus enabling us to better serve our consumers and other stakeholders, whilst providing employees with access to broader opportunities.”
