BUA Group, a company owned by Nigerian billionaire Abdul Samad Rabiu, has confirmed the merging of its food businesses into a newly consolidated food company known as BUA Foods.
The food businesses merged into the newly consolidated BUA Foods include BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.
The development was confirmed by the billionaire shortly after the launch of the new business in Lagos.
The tycoon also confirmed that the newly birthed company has commenced the process of listing on the Nigerian Exchange (NGX). He stated: “Nigerian investors would be given an opportunity to invest in the Company for continuous growth. We will list the Company soon and Nigerians will have the opportunity to contribute their resources to consolidate its leading position in the food industry.”
The merger will help the group maintain its market leadership in the agribusiness and food-processing sectors, as well as maximize opportunities inherent in the African Continental Free Trade Area.
Billionaires.Africa understands that BUA Group has invested massively in the foods sector over the years. It boasts eight ultra-modern factories in Nigeria, where food products such as flour, pasta and rice are refined and processed.
The group is also looking to expand its sugar-refining capacity from 1.5 million to 1.7 million metric tonnes through its vertically integrated sugar facility in Lafiagi in Kwara State, Nigeria.
Recently, BUA Group secured a $200-million corporate facility from the Africa Finance Corporation to complete its new sugar plant in Lafiagi. Upon completion, the project is expected to boost the group’s import-substitution and vertical integration strategies, as well as enhance its topline.