Indomie market leadership Rises following acquisition of Dangote noodles production plants
De United, makers of Indomie Noodles has again expanded its leadership of the noodle’s market in Nigeria by acquiring Dangote Noodles Limited’s production plants in Ikorodu and Calabar.
The development follows Dangote’s strategic decision to divests from the noodles business and focus its resources on the production of pasta and flour production, where it has already enjoys market leadership. The transaction is valued at N3.75billion.
This deal comes shortly after Dangote sold a minority stake his cement business to foreign investors in a one-off stock market deal valued at N27 billion. De United Foods has also reported that the deal transaction also includes an agreement to also buy stock worth N383.94 million.
De United Foods has been the dominant noodles brand in Nigeria since it launched the country’s first noodle’s pack about 20 years ago. The company holds a staggering market share of around 70 percent and is seeking to consolidate the sector.
Dufil Prima Foods, the parent company of De United Foods, is a privately held company set up over two decades ago. It has grown to become the largest pasta maker in West Africa. De United Foods said the transaction had been approved by both companies and the regulators.
A banking source close to the deal said that De United Foods would continue to produce noodles under the Dangote brand for two years after the acquisition. In July, Dufil Prima Foods said it would raise N40 billion in the local debt market to broaden its funding base.