As a result of dwindling investment returns from one of its subsidiaries, Dangote Flour Mills, the Dangote Group has decided to sell its noodles business to a competitor, Dufil Prima Foods.
Though the Group, in a statement announcing the sale on Tuesday, remained silent on why it took the decision, sources said the emergence of too many noodles’ products in the market is a major factor.
The fact that the Dangote Group is currently refocusing its interest on oil and gas business, is said to have been a major reason for divesting from the noodles business.
The Chief Executive Officer, Dufil Prima Foods, Deepak Singhal, speaking on the deal to newsmen described the acquisition of Dangote Noodles as strategic, as his firm has the intention of dominating the noodles market in Nigeria.
He said Nigeria, as a large market has given the company the leeway to expand to other neighbouring countries, which acquiring Dangote’s Noodles would make more feasible.
The Group Managing Director, Dangote Flour Mills, Thabo Major, said with the divestment, Dangote Flour will now focus on its strengths in flour and pasta as to improve more on profitability by improving in areas of quality, distribution and marketing.
On the fate of the workers at the factory, he said arrangements were made to accommodate them in the deal.
Dangote, rated as the richest man in Africa, and 25th in the world is expanding his interests in cement industry to other African countries as well as constructing the biggest private refinery in Nigeria.
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