Federal Competition and Consumer Protection Commission

Acquisition by Ecowise Horizon Investment Limited and Greywise Investment Solutions Limited of 5,685,414,550 ordinary shares of N0.50k each in the issued share capital of Honeywell Flour Mills PLC held by Siloam Global Services Limited.

Thursday, January 06, 2022
  • Section 96(2) of the Federal Competition and Consumer Protection Act, 2018 (FCCPA), and Regulations 16(1)(2) of the Merger Review Regulations, 2020 (MRR), requires publication of merger notifications.

In accordance with these enactments a notification received by the Commission is hereunder published.

This notification involves the following undertakings;

Flour Mills of Nigeria Plc

Ecowise Horizon Investment Limited

Greywise investment solutions limited

Honeywell Flour Mills Plc

Siloam Global Services Limited*

The proposed transaction is an acquisition by Ecowise Horizon Investment Limited and Greywise Investment Solutions Limited (hereinafter referred to as the Acquirers) of 5,685,414,550 (Five Billion, Six Hundred and Eighty-Five Million, Four Hundred and Fourteen Thousand, Five Hundred and Fifty ordinary shares of N0.50k (Fifty Kobo) each, representing 71.69% of the issued share capital of Honeywell Flour Mills PLC (Target) held by Siloam Global Services Limited (Seller) (the Proposed Transaction). The Target is active in the fast-moving consumer goods sector, with a 22-year experience in wheat milling and a significant presence in the Nigerian market with respect to flour and its derivatives, especially the ball foods, pasta, and noodles segments. The Acquirers are subsidiary/affiliate of Flour Mills of Nigeria Plc (FMN), respectively.

The strategic and economic rationale for the proposed Transaction is that it presents the Parties with the opportunity to combine synergies and utilize efficiencies to bolster the industry’s capacity, reduce output costs, enhance productivity and enable like for like industry competition, in order to contribute effectively to meeting and addressing the increasingly important issue of national food security, in the light of Nigeria’s demographic outlook, and by output expansion, contribute significantly to Nigeria’s economic diversification, exports (especially to the African continent), and generate foreign exchange earnings. Looking ahead, only scaled and highly efficient Nigerian entities will survive the competition unleashed by the opening up of the African market, and take full advantage of the African Continental Free Trade Agreement (AfCFTA). Comments by interested persons must reach the Commission within seven (7) business days of the publication. Only comments that address competition or relevant/ancillary matters are considered relevant.

Comments may be sent to the Commission by email (mergernotification@fccpc.gov.ng), using the Subject/Title of the Notification as email subject.