PZ Cussons quits Nigeria palm oil business, sells $70m stake
PZ Cussons PLC has officially declared its withdrawal from Nigeria’s palm oil industry following a definitive agreement with Wilmar International Limited.
As per the terms of the arrangement, Wilmar will purchase PZ Cussons’ 50% ownership in their joint venture, PZ Wilmar Limited, for a cash payment of $70 million.
This development was disclosed in a joint statement released by both entities.
The completion of the deal is contingent upon obtaining the necessary regulatory and corporate approvals.
According to the statement, once the transaction is finalized, Wilmar will take full ownership of PZ Wilmar, possessing 100% of its equity.
It was also mentioned that the company's name will change once the transaction concludes, with a proper announcement regarding the new name to follow in due time.
The statement further highlighted that completing the transaction is still subject to several relevant approvals but is anticipated to occur in the last quarter of calendar year 2025.
Both companies indicated that the agreement between the current joint venture partners lays a solid groundwork for continuity and a smooth transition of ownership, with no major impact expected on staff or operations.
In discussing the transaction, Wilmar Chairman & CEO, Mr. Kuok Khoon Hong stated, “We sincerely appreciate PZ Cussons for their collaboration and support since the establishment of this joint venture in 2010, which has contributed to its success and leading market position in Nigeria.
“Wilmar is acquiring PZ Cussons plc’s 50% interest in PZ Wilmar because we are optimistic about the long-term prospects of Nigeria’s palm oil industry, given its large and expanding population and suitability for palm cultivation.
“The robust demographics of the Nigerian market, with over 200 million consumers, present a significant growth opportunity in food and nutrition. Wilmar aims to further develop the upstream palm plantation and downstream operations in Nigeria. As a leading global player, Wilmar is well-equipped to invest and capitalize on these opportunities after the deal’s completion.
“However, we acknowledge the importance of having strong local partnerships in the markets in which we operate and will seek a fitting local partner for the business.”
The CEO of PZ Cussons PLC, Jonathan Myers, characterized the joint venture with Wilmar in Nigeria as a longstanding and mutually advantageous partnership.
He expressed appreciation for Wilmar’s leadership for their collaboration and commended the employees of PZ Wilmar for their commitment and exemplary performance over the years.
Founded in 2010 as a joint venture between PZ Cussons PLC (UK) and Wilmar, PZ Wilmar is viewed as one of the largest sustainable palm oil enterprises in Nigeria.
The statement also noted that the joint venture retains minority interests in two palm oil plantations in the country, both of which are primarily owned by Wilmar.
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