The Nigerian market is certainly a hotspot for consumer goods as a result of its position as the most populous country on the African continent, rise in urbanization, amongst others.
Consequently, the flour market which seeks to meet the rising demand for downstream food items like grain-based foods, sugar, bread, noodles, pasta etc., is one of the largest contributors to the Agricultural sector and essentially the Nigerian economy at large.
While it has naturally witnessed steep competition amongst players expanding their capacities to meet production demand, it has also experienced a growth in its overall quality, provided more job opportunities for the masses, and even witnessed the benefits of economies of scale that come with providing high-demand products for a population as ours.
It is therefore, with an understanding of the size and scale of the market that, one month after the culmination of the transaction, many are still assessing the merger of two industry giants, Honeywell Flour Mills Plc (HFMP) and Flour Mills of Nigeria Plc (FMN), and what it means for the agricultural sector, the Nigerian economy, and ultimately the average Nigerian consumer.
Mergers and acquisitions are not uncommon in the corporate space. If for anything, they have pivoted some of the biggest global giants that led revolutionary projects, and many investors are wondering if this transaction will provide one of such astronomical expansions for an economy certainly in need of revitalization.
The deal combines FMN’s market-leading offerings that include grain-based foods, sugar, starches, oils, spreads and breakfast cereals with HFMP’s market leading diverse and differentiated range of carbohydrate products.