Wilmar International partners with TGI Group for West African food business

Wilmar International Limited has announced a deal with Tropical General Investments Group (TGI Group). They will merge their Nigerian and Republic of Benin operations into a single joint venture, sharing ownership 50:50.

According to the agreements, both companies will bring together their businesses and brands in Nigeria and the Republic of Benin. This will cover areas like farming, oil palm plantations, edible oils, nuts, rice, food production, and distribution. The market size for these areas is over $12 billion in Nigeria and Benin.

The new platform will combine well-known consumer brands, strong processing capacity, local expertise, and a wide distribution network in West Africa. This will create a business that covers the entire agricultural value chain, from farming to processing and distribution. The main aim is to offer good quality food and products at fair prices for people in West Africa by blending global know-how with local manufacturing.

The businesses will be managed by a Singapore holding company, owned equally by Wilmar and TGI Group. The deal's completion depends on meeting standard conditions, including getting merger approvals. It is expected to finalize in the financial year ending December 31, 2026.

Mr Kuok Khoon Hong, Chairman and CEO of Wilmar, shared his thoughts on the deal. He noted, "Nigeria and the Republic of Benin are key consumer markets in Africa, supported by a population of more than 260 million and sometimes experience structural deficits in both food production and distribution."

He added, "The combination of Wilmar’s integrated palm oil and specialty fats capability and its global scale in food staples & consumer goods with TGI Group’s manufacturing scale, established consumer brands and nationwide distribution platform creates a uniquely positioned business to serve African consumers and to contribute to the long-term development of the region."

Mr Santosh Pillai, Wilmar’s Africa Head, said, "This transaction represents a compelling strategic fit for Wilmar in Africa. TGI Group brings strong local execution capabilities, established consumer brands and a deep distribution network, which are highly complementary to Wilmar’s upstream and processing strengths as well as portfolio of trusted brands."

He continued, "Together, we are creating an integrated platform with the scale, local insight and operating depth to better serve consumers in Nigeria and the Republic of Benin to support the long-term development of the region’s food and agriculture sectors."

Mr Cornelis G. Vink MFR, Founder and Chairman of TGI Group, stated, "For more than four decades, TGI Group has built a leading position in Nigerian food manufacturing and distribution. The combination with Wilmar’s Nigerian businesses brings together two highly complementary platforms built on delivering high quality locally manufactured food products across the sub region. This partnership will leverage Wilmar’s global scale and expertise as well as TGI’s local knowledge to deliver innovative food solutions across Africa."

Mr Farouk M Gumel, Vice Chairman of TGI Group, added, "By integrating Wilmar’s upstream and downstream palm oil capabilities, processing expertise, portfolio of trusted consumer brands with TGI Group’s manufacturing scale, local market expertise, established consumer brands and nationwide route-to-market, we are building a platform that will deepen domestic value addition, support smallholder farmers, create jobs and contribute meaningfully to Nigeria’s food security."