Africa's tycoon Aliko Dangote shakes up food sector with salt, sugar, and rice merger announcement – Business Insider Africa
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Dangote Industries Limited, led by Africa’s wealthiest man, Aliko Dangote, is set to make a bold move in the food industry. The conglomerate plans to merge its salt, sugar, and rice businesses into a single dominant force, creating an African food powerhouse.
The merger will bring together NASCON Allied Industries Plc, known for its renowned salt-making operations, with Dangote Sugar, the owners of sub-Saharan Africa’s largest sugar refinery. Dangote Rice, the group’s rice business, will also be integrated into this strategic combination.
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Following in the footsteps of its rival, BUA Group, which successfully consolidated its food businesses into BUA Foods, Dangote Industries Limited aims to strengthen its market position and capture a larger share of the growing African food market.
While NASCON and Dangote Sugar are already listed on the Lagos Stock Exchange, Dangote Rice is not yet quoted. This merger is expected to generate significant attention from investors and potentially impact the market capitalisations of the involved companies.
Dangote Industries Limited’s ambitious move comes as the conglomerate continues to diversify its portfolio. Notably, their flagship project, the $19 billion oil refinery in Lekki, Lagos, has recently commenced operations with a daily capacity of 650,000 barrels. Additionally, BUA Group is constructing a refinery in Akwa Ibom State, set to process 200,000 barrels of crude oil per day by 2025.
The consolidation of their food businesses underscores Dangote Industries Limited’s commitment to solidifying its position in the African market. By creating a unified entity, the conglomerate aims to revolutionise the food industry, cater to diverse consumer preferences, and drive economic development across the continent.
This merger announcement marks an exciting chapter for Dangote Industries Limited and the African food sector. As the conglomerate takes this bold step, industry observers and business enthusiasts eagerly anticipate the future impact of this consolidation on the African food landscape.
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