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Suntory agrees to acquire GSK Nigeria’s soft drinks business

DBR Staff Writer Published 07 July 2016

Suntory Beverage & Food Nigeria has agreed to acquire the soft drinks business and route to market capabilities of GlaxoSmithKline in Nigeria.

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In December 2013, Suntory acquired the beverage brands of Lucozade and Ribena and their business foundation from GlaxoSmithKline in UK.

GlaxoSmithKline Consumer Nigeria (GSK Nigeria) has continued manufacture and sale of the two beverage brands in Nigeria under the license of agreement.

The latest acquisition is expected to strengthen Suntory's business in Nigeria and Africa.

The transaction, which is subject to regulatory approvals, including the Nigerian Stock Exchange's approval, is expected to complete at the end of next month.

The deal will include the sale of GSK's Agbara manufacturing plant designed for drinks business and 6.45ha of land.

GSK will retain 3.45ha of the land to allow it to invest and expand the retained consumer business.

GSK Nigeria board chairman Edmund Onuzo said: "Despite this transaction, GSK Nigeria will still be listed on the Nigerian Stock Exchange and will continue to manufacture, market, and distribute a portfolio of leading healthcare brands including Sensodyne, Panadol, Horlicks and, in future, the legacy Novartis brands, such as Voltaren and Otrivin."

GSK Nigeria is one of Africa's largest consumer healthcare firms. It has offices in Ilupeju, Agbara, and warehouses in Ijanikin and Isolo areas of Lagos.

Image: Suntory agrees to acquire GSK Nigeria's soft drinks business. Photo: courtesy of adamr at FreeDigitalPhotos.net.