Nigeria’s Mergers and Acquisitions Boom: Key Deals Shaping 2024
- Posted on December 27, 2024
- Editors Pick
- By Samiat
Nigeria’s Mergers and Acquisitions Boom: Key Deals Shaping 2024
Detailed Breakdown:
2024 witnessed an unprecedented surge in mergers and acquisitions (M&A) activity in Nigeria, marking the busiest year for corporate restructuring since 2014. The year saw deals worth $3.8 billion in the first nine months, making Nigeria the second-highest M&A market in Africa after South Africa. This surge, as reported by DealMakers Africa, included 48 transactions across various industries, with the oil and gas sector dominating the headlines. Below are the standout deals that reshaped Nigeria’s corporate landscape:
1. Renaissance’s $2.4 Billion Acquisition of SPDC
In January, a consortium of five Nigerian oil companies—ND Western, Aradel Holdings, Petrolin Group, First E&P, and Waltersmith Group—banded together to acquire Shell Petroleum Development Company (SPDC). This $2.4 billion deal marked a historic exit for Shell’s onshore operations in Nigeria.
• Key Details:
• Total deal value: $2.8 billion.
• Payment structure: $1.3 billion upfront and $1.1 billion in future payments.
• Approval: The Federal Government granted regulatory clearance on December 18, making it the largest M&A deal in over a decade.
2. Chappal Energies’ $860 Million Bid for TotalEnergies’ Onshore Assets
In July, Chappal Energies, a new entrant in Nigeria’s oil and gas scene, initiated a bold $860 million acquisition of TotalEnergies’ 10% stake in the SPDC Joint Venture (JV).
• Key Details:
• Assets include 18 oil mining licenses.
• Regulatory approval is still pending.
• The JV is now a fully Nigerian venture, with SPDC under Renaissance and NAOC controlled by Oando.
3. Seplat’s $800 Million Acquisition of MPNU
After a 30-month wait, Seplat finally received regulatory approval to acquire Mobil Producing Nigeria Unlimited (MPNU), the operator of ExxonMobil’s onshore assets in Nigeria.
• Completion: December 2024.
4. Oando’s $783 Million Acquisition of NAOC
Oando acquired Eni’s onshore assets in Nigeria through its purchase of Nigerian Agip Oil Company (NAOC) in a $783 million deal.
• Key Details:
• Approval: Granted in July.
• Completion: Finalized by August.
• This deal set a precedent for international oil companies (IOCs) exiting Nigeria’s onshore sector.
5. Tolaram’s N104 Billion Acquisition of Guinness Nigeria
In a departure from full takeovers, Tolaram Group acquired a 58% stake in Guinness Nigeria from Diageo for N104 billion, signaling Diageo’s exit from the Nigerian market.
• Key Trend:
• International players, such as Heineken, are retreating from Nigeria’s brewery industry.
6. Saroafrica’s Takeover of Presco
Saroafrica International, through its special-purpose vehicle Oak and Saffron, acquired an 86.7% stake in SIAT Group, granting it majority control of Presco Plc.
• Expansion Plans:
• Presco later bid $125 million for Ghana Oil Palm Development Company (GOPDC).
7. FBN Holdings’ Sale of FBNQuest Merchant Bank
FBN Holdings divested its investment banking subsidiary, FBNQuest Merchant Bank, to EverQuest Acquisition LLP.
• Key Details:
• Consortium: Custodian Investment, Aion Investment, and Evercorp Industries.
• Asset value: Estimated at N465 billion.
8. Providus Bank and Unity Bank Merger
In response to the Central Bank of Nigeria’s recapitalization directive, Providus Bank and Unity Bank merged to strengthen their financial position.
• Key Details:
• The merger, finalized in August, marks Nigeria’s first banking merger in five years.
• Support: N700 billion funding from the CBN.
Conclusion:
From oil and gas to agriculture and banking, 2024 demonstrated Nigeria’s evolving corporate landscape, with local firms stepping up to take control as international players exited. These landmark deals have not only reshaped industries but also signaled a new era for Nigerian business.
Detailed Breakdown:
2024 witnessed an unprecedented surge in mergers and acquisitions (M&A) activity in Nigeria, marking the busiest year for corporate restructuring since 2014. The year saw deals worth $3.8 billion in the first nine months, making Nigeria the second-highest M&A market in Africa after South Africa. This surge, as reported by DealMakers Africa, included 48 transactions across various industries, with the oil and gas sector dominating the headlines. Below are the standout deals that reshaped Nigeria’s corporate landscape:
1. Renaissance’s $2.4 Billion Acquisition of SPDC
In January, a consortium of five Nigerian oil companies—ND Western, Aradel Holdings, Petrolin Group, First E&P, and Waltersmith Group—banded together to acquire Shell Petroleum Development Company (SPDC). This $2.4 billion deal marked a historic exit for Shell’s onshore operations in Nigeria.
• Key Details:
• Total deal value: $2.8 billion.
• Payment structure: $1.3 billion upfront and $1.1 billion in future payments.
• Approval: The Federal Government granted regulatory clearance on December 18, making it the largest M&A deal in over a decade.
2. Chappal Energies’ $860 Million Bid for TotalEnergies’ Onshore Assets
In July, Chappal Energies, a new entrant in Nigeria’s oil and gas scene, initiated a bold $860 million acquisition of TotalEnergies’ 10% stake in the SPDC Joint Venture (JV).
• Key Details:
• Assets include 18 oil mining licenses.
• Regulatory approval is still pending.
• The JV is now a fully Nigerian venture, with SPDC under Renaissance and NAOC controlled by Oando.
3. Seplat’s $800 Million Acquisition of MPNU
After a 30-month wait, Seplat finally received regulatory approval to acquire Mobil Producing Nigeria Unlimited (MPNU), the operator of ExxonMobil’s onshore assets in Nigeria.
• Completion: December 2024.
4. Oando’s $783 Million Acquisition of NAOC
Oando acquired Eni’s onshore assets in Nigeria through its purchase of Nigerian Agip Oil Company (NAOC) in a $783 million deal.
• Key Details:
• Approval: Granted in July.
• Completion: Finalized by August.
• This deal set a precedent for international oil companies (IOCs) exiting Nigeria’s onshore sector.
5. Tolaram’s N104 Billion Acquisition of Guinness Nigeria
In a departure from full takeovers, Tolaram Group acquired a 58% stake in Guinness Nigeria from Diageo for N104 billion, signaling Diageo’s exit from the Nigerian market.
• Key Trend:
• International players, such as Heineken, are retreating from Nigeria’s brewery industry.
6. Saroafrica’s Takeover of Presco
Saroafrica International, through its special-purpose vehicle Oak and Saffron, acquired an 86.7% stake in SIAT Group, granting it majority control of Presco Plc.
• Expansion Plans:
• Presco later bid $125 million for Ghana Oil Palm Development Company (GOPDC).
7. FBN Holdings’ Sale of FBNQuest Merchant Bank
FBN Holdings divested its investment banking subsidiary, FBNQuest Merchant Bank, to EverQuest Acquisition LLP.
• Key Details:
• Consortium: Custodian Investment, Aion Investment, and Evercorp Industries.
• Asset value: Estimated at N465 billion.
8. Providus Bank and Unity Bank Merger
In response to the Central Bank of Nigeria’s recapitalization directive, Providus Bank and Unity Bank merged to strengthen their financial position.
• Key Details:
• The merger, finalized in August, marks Nigeria’s first banking merger in five years.
• Support: N700 billion funding from the CBN.
Conclusion:
From oil and gas to agriculture and banking, 2024 demonstrated Nigeria’s evolving corporate landscape, with local firms stepping up to take control as international players exited. These landmark deals have not only reshaped industries but also signaled a new era for Nigerian business.
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