Business

Olam International eyes Nigeria’s wheat market with Dangote Flour Mills deal

Commodity trader Olam International on Tuesday said it will buy Dangote Flour Mills Plc, as it looks to bolster its position in Nigeria’s wheat market. Olam’s Nigerian unit, which holds a 0.1 percent stake in Dangote Flour Mills, will buy the rest of the company for an enterprise value of 130 billion naira ($425 million).

The deal expands Olam’s reach in the pasta market in Nigeria, as it looks to cash in on the growing demand of wheat-based products in the region. The final deal value will be based on net debt and net working capital of Dangote Flour Mills, the company said in a statement.

Olam will fund the deal, which is on a debt free and a cash free basis, from internal cash resources and existing borrowing. ($1 = 305.9500 naira). Reuters