Olam Completes Purchase of Dangote Flour
Dangote Group continues to exit sectors as it prepares to focus on cement, petrochemicals and oil refining businesses. Olam has completed the purchase of Dangote Flour by paying N120 billion to shareholders.
If you look at the business history of Aliko Dangote, he has pursued one playbook: upstream accumulation of capabilities. When crowd emerges in a sector, he exits. So, that Olam, the commodity trader, is swallowing Dangote Flour Mills, to boost its wheat market in Nigeria, is just the beginning. Since 1979, Dangote has climbed the business ladder by moving from downstream to upstream. And whenever there is huge concentration in a sector, he leaves. The refinery business will be the ultimate destination for that conglomerate.
Shareholders of Dangote Flour Mills Plc (DFM), on Monday, unanimously approved the acquisition of the company by Crown Flour Mills Limited, the Nigerian subsidiary of global food and agri-business conglomerate, Olam International Limited, after a whopping payment of N120 billion to the shareholders.Olam has made an offer for the acquisition of 100 per cent equity in Dangote Flour Mills for a consideration of N24.00 per share. The acquisition was carried out through a scheme of arrangement. Most of the shareholders who spoke at the meeting lauded the company’s management for the noble decision, describing it as one in the best interest of the shareholders.
That makes Aliko Dangote a serial entrepreneur of some sort: create a thriving business, dominate for a while, and when it becomes a dog fight in the space, exit!
Without awareness, you could be in business for 25 years and still won't make progress.
Good business for both parties anyway.
