Nigerian billionaire, Aliko Dangote’s Sugar Refinery Plc, Nascon Allied Industries Plc and Rice Runt no longer too prolonged previously unveiled plans to place a gargantuan food conglomerate.
This comes because the leading constructed-in sugar industry majority owned by Dangote proposed a merger with Nascon Allied Industries Plc and Dangote Rice Runt.
The merger is amongst the important thing matters to be discussed right by arrangement of the upcoming Board of Directors assembly scheduled for Friday, 28th of July 2023. This became as soon as contained in a press liberate released by Dangote Sugar Refinery Plc by the Company’s Secretary and Correct Adviser, Mrs Temitope Hassan.
At the assembly, the board of directors will review the terms and doable advantages of the merger, awaiting a vital impact on the Nigerian sugar industry and the total market.
What to Expect from Dangote’s proposed merger
This doable merger seeks to diagram a gargantuan food conglomerate with various merchandise, including sugar, rice, salt, vegetable oil, tomato paste, seasoning, and nice merchandise.
Additionally, the strategic switch aims to consolidate the sources and operations of the three companies, enhancing market region, operational efficiency, and profitability.
Upon approval, the merger might perhaps perhaps well also diagram a vital shift in the Nigerian foods and particular person goods industry, because the consolidation of these agencies is expected to reshape the market panorama and diagram new snort alternatives.
The proposed merger has attracted determined reactions from traders on the Nigerian Alternate because the shares of both Dangote Sugar and Nascon skilled a surge in build a matter to.
Shares of Dangote Sugar and Nascon dangle been trading at $0.0385 and $0.0329, respectively, representing a 9.94 per cent and 9.91 per cent develop from their opening prices this morning.
This portion mark surge has resulted in a market capitalization of $425.7 million for Dangote Sugar and $seventy nine.3 million for Nascon.