Friday, Nov 27th 2020 10:37 PM
Lagos
+29°C

Market Digest Nigeria

Business

Dangote Flour Mills sells noodles business to Indomie

Dufil Prima Foods, makers of the popular Indomie noodles, leaders in the noodle market in Nigeria, has acquired Dangote Noodles.

Dangote Flour Mills, which produces Dangote Noodles, announced on Tuesday that it was quitting the noodle business because it was not strategic to its vision.

Confirming this deal, Chief Executive Officer of Dufil Prima Foods, Mr Deepak Singhal, described the acquisition of Dangote Noodles as strategic as they continue to seek more dominance of the noodles market.

Speaking on the sale, the Group Managing Director of Dangote Flour Mills, Mr Thabo Mabo, said in view of this, assets of Dangote Noodles have been sold to Dufil Prima Foods.

He described the deal reached by both parties as “win-win,”

Mr Mabo disclosed that the sale became effective last Monday, stating that with this, “Dangote Flour stands to boost more market presence through robust marketing.”

According to him, the sale and transfer of assets are one of the most perfect divestments, with Dufil Prima Foods taking possession and kicking off production immediately.

“Under the terms of sales agreement, Dufil Prima Foods, will continue to produce and sell noodles under the brand name, ‘Dangote Noodles’ for two years before changing the brand name,” Mr Mabo said.

“As part of its regular business portfolio review, Dangote Flour Mills (DFM) has exited its noodles business as it does not consider it strategic.

“The company has sold the assets of Dangote Noodles to Dufil Prima Foods, makers of Indomie noodles.

“To smoothen the transition, Dangote Flour Mills has offered Dufil the use of some of its facilities on an interim basis.

“The noodles business was part of Dangote Flour Mills which the Dangote Group recently re-acquired from Tiger Brands,” the firm said.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top
SUBSCRIBE NOW!
Get the best of Market Digest Nigeria financial news
delivered to your inbox daily!
By clicking Give it a try, I hereby: Agree and Consent to the Terms of Use and the Privacy Policy
& I may receive free newsletters & promotions from this site and can choose to unsubscribe anytime.