South African food company Tiger Brands has agreed to acquire 63.4% stake in Dangote Flour Mills, a leading manufacturer of pasta and flour in Nigeria, from Dangote Industries.
Tiger Brands announced in May 2012 that it was holding negotiations with Dangote Industries to acquire a stake in Dangote Flour Mills.
The food companies have submitted the proposal to the Nigeria's Securities and Exchange Commission for approval.
Headquartered in Lagos, Nigeria, Dangote Flour Mills has a market capitalisation of about NGN24,800bn ($152m). The company is involved in milling, processing, and marketing branded flour products in the country, and its 73.4% of the stock is held by Dangote Industries.
Dangote Flour Mills has a milling capacity of nearly 5,000 tons per day and offers confectionery flour, wheat flour, bread flour, pasta semolina, spaghetti and macaroni under the Dangote brand.
Tiger Brands, which produces bread, breakfast cereal and energy drinks, has been actively seeking to expand into Nigeria - in April 2010, it bought the biscuit company Deli Foods Nigeria and the following month, it acquired a 49% equity stake in UAC Foods.
Dangote Industries is the personal investment arm of the Nigerian businessman Aliko Dangote and owns 90% of Dangote Cement, a leading cement producer in Africa.