22 C
Wednesday, September 30, 2020
- Advertisement -

Olam Acquires BUA’s Mills


Development of Nigeria’s Digital Economy Anchored on Eight Pillars – A Speech by Isa Patanmi

I am highly delighted to launch the Digital Nigeria Portal and Mobile App as part of the implementation of our National Digital...

Why I Made TIME100 Most Influential People of 2020

Not every day do you wake up to this —honoured to be named to the 2020 Time100 from TIME. This has been...

Subsidizing the Naira Blocks Nigeria’s Economic Takeoff By Kingsley Moghalu

The Naira should be floated to find its exchange rate value on the market if Nigeria’s economy is to become productive, instead...

Africa, AfCFTA, The Private Sector and The Way Forward By Abdul Samad Rabiu

I start by congratulating African leaders on the opening of the AfCFTA secretariat last month. I believe the secretariat will further help...

Olam International, the global agribusiness conglomerate has agreed to buy the wheat milling and pasta manufacturing businesses of Nigeria’s BUA Group. The deal is worth $275 million (N54.7 billion).

Olam, owned by Singapore’s Temasek, said it had acquired BUA Group’s Amber Foods Limited, owners of two wheat mills and a pasta manufacturing plant in Lagos, a non-operating mill in the northern state of Kano and a wheat manufacturing plant under construction in the southern city of Port Harcourt.

The acquisition will double Olam’s daily aggregate wheat milling capacity in Nigeria from 2,380 metric tonnes per day to 6,140 metric tonnes per day once the facilities in Port Harcourt are completed in June 2016. Olam’s total wheat milling capacity in Sub-Saharan Africa will also double to about 7,640 metric tonnes per day.

“Nigeria is a high growth milling market with volumes expected to reach five million metric tonnes in 2020 as population and urbanization increase the demand for wheat-based products,” said K. C. Suresh, the Managing Director of Olam Grains. “The size of the Nigerian flour market is in excess of $2 billion, growing at 3.5 percent per year while the pasta market is growing at the rate of 8 percent per year.”

Olam became one of the largest wheat millers in Nigeria after it completed the acquisition of Crown Flour Mills (CFM) Limited for $107.6 million in 2010. In 2013, Olam expanded CFM’s wheat milling capacity and established milling operations in the African countries of Ghana, Senegal, and Cameroon.

With acquisition of BUA Group’s wheat and pasta mills, Olam has become the second largest wheat milling and pasta manufacturing company in Nigeria, the statement said.

“We are confident about the growth prospects in Nigeria,” said Mukul Mathur, Country Manager for Olam Nigeria, “so expanding our participation here is a logical step to capitalize on the opportunity. Our value-added export business in the country puts us in a strong position to manage forex availability.”

Olam International started its global agricultural commodities trading business in Nigeria in 1989 and has invested over $1 billion in the country’s agriculture sector in the last ten years.

- Advertisement -


Please enter your comment!
Please enter your name here

- Advertisement -

Business Profiles

Akeem Lawal

Mr Akeem Lawal is a pioneering member of the Interswitch management team and is the current Divisional Chief Executive officer of Payments...

Ahmed Rady

Ahmed Rady is a managing director at Alta Semper Capital. He joined Alta Semper in 2018 as a Director. He brings more...

Olufunke Aiyepola

Olufunke Aiyepola is the chief executive of UTL Trust Management Services Limited. She studied Law at the University of Ife (now Obafemi...

Edefe Ojomo

Edefe Ojomo is a lecturer in the Department of Jurisprudence and International Law at the University of Lagos, Nigeria. She has a...

Afsane Jetha

Afsane Jetha is the Managing Partner and CEO of Alta Semper Capital, which she co-founded in 2015 alongside Ronald Lauder (Chairman of...