Nestlé Nigeria seeks SEC, FCCPC approval for waters business transfer to Peranel JV

Nestlé Nigeria Plc is seeking regulatory and shareholder approval for the proposed transfer of its waters and premium beverages business to Peranel, a 50:50 joint venture between its parent company, Nestlé S.A., and global investment firm Platinum Equity.

The company disclosed this in a notice to the Nigerian Exchange Limited (NGX), its shareholders and the investing public, providing an update on the proposed business restructuring.

The development follows the July 30, 2026 announcement that Nestlé S.A. and Platinum Equity had entered into an exclusive arrangement to establish Peranel as a joint venture for Nestlé’s waters and premium beverages business.

Board reviews proposed transaction

Nestlé Nigeria said its board met on October 28, 2026, to consider management’s report on developments since the initial announcement.

According to the company, the proposed transaction in Nigeria will involve transferring its existing waters and premium beverages business to a newly established company, which will subsequently become part of Peranel.

• “In Nigeria, subject to the receipt of the requisite approvals of the Securities and Exchange Commission, the Federal Competition and Consumer Protection Commission and the shareholders, the proposed Transaction will involve the transfer of Nestlé Nigeria’s existing waters and premium beverages business for adequate consideration to a new company which will then become part of Peranel.”

Following its review of management’s report, the board resolved to seek the necessary regulatory and shareholder approvals to facilitate the transaction.

Board reviews valuation reports, fairness opinion

As part of its consideration of the proposed carve-out, the board reviewed three reports relating to the valuation and fairness of the transaction.

• These included an asset valuation report prepared by Niyi Fatokun & Co., a business valuation report by KPMG, and an independent expert fairness opinion prepared by Deloitte.

The assessments are expected to provide an independent basis for evaluating the proposed transfer and its consideration.

Nestlé’s Shareholding Remains Unchanged

Nestlé Nigeria clarified that the proposed transaction would not affect its parent company’s ownership interest in the Nigerian subsidiary.

• The company expressly stated that the transaction “does not affect or alter the shareholding of Nestlé in Nestlé Nigeria.”

It added that further announcements would be made as required under applicable regulatory and disclosure obligations.

Profit Before Tax rises 51.5% to N193.88 billion

The proposed restructuring comes as Nestlé Nigeria reports improved financial performance for the nine months ended September 30, 2026.

• The company recorded a 51.5% increase in profit before tax to N193.88 billion, compared with N127.96 billion in the corresponding period of 2025.
• Revenue grew by 10.4% to N976.53 billion from N884.54 billion, while profit after tax increased by 42.6% to N103.37 billion from N72.48 billion.
• Earnings per share also advanced to N130.41 from N91.44.

The improved profitability was supported by stronger gross margins and lower net finance costs, highlighting an improvement in the company’s earnings performance during the period.