Mergers and Acquisitions in the Nigerian Food Industry
The Nigerian food industry has recorded several mergers and acquisitions (M&As) in the last few years. Notable among the M&As include the acquisition of the beverage operation of GSK by Suntory Foods; Olam's acquisition of BUA Flour and BUA Pasta; acquisition of Chi Ltd by the Coca-Cola Company; acquisition of May & Baker's Noodles Factory by Dufil Prima Foods; and the co-investment in Beloxxi by 8 Miles, Africa Capital Alliance (ACA) and DEG. The year 2016 marked a watershed in the business history of food manufacturing giants in Nigeria with no less than 18 concluded M&As and investment deals recorded of which the food and beverage sector was a significant part. The M&As were caused by some factors that are clearly different from what has been investigated or predicted by most business studies. The factors are highlighted in this article.
Also, M&As affect less powerful businesses in different foreseeable ways. Thus, this article presents a report of the M&As that have occurred in the Nigerian food industry in the last three years and also highlights their possible impacts on SMEs.