Nestle Nigeria to Sell Waters, Milo, Other Premium Beverages Arm to New Firm
- Nestlé Nigeria plans to transfer its waters and premium beverages business to a new company linked to the joint venture Peranel
- SEC, FCCPC and shareholder approvals are still needed; Nestlé has not disclosed the deal’s value, completion date or affected brands
- Nestlé Nigeria’s nine-month profit before tax rose 51.5% to ₦193.88 billion, while revenue increased 10.4%
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nestlé Nigeria Plc is preparing for a major shake-up in its business operations as it moves to transfer its waters and premium beverages division to a new company under a global restructuring arrangement.
The proposed deal could see part of the food and beverage giant’s Nigerian operations come under a new corporate structure, although the company has assured shareholders that its ownership arrangement will remain unchanged.
Source: Getty Images
In a notice to the Nigerian Exchange Limited (NGX), Nestlé Nigeria disclosed that it is seeking regulatory and shareholder approval to transfer the affected business to a newly established company.
The new entity will subsequently become part of Peranel, a joint venture owned equally by Swiss food giant Nestlé S.A. and global investment firm Platinum Equity.
Why Nestlé Nigeria is restructuring business
The development follows a July 30, 2026 announcement that Nestlé S.A. and Platinum Equity had entered into an exclusive arrangement to establish Peranel.
The partnership is designed to bring Nestlé’s waters and premium beverages operations under a new ownership and management structure.
Nestlé Nigeria said its board met on October 28, 2026, to review management's report on the proposed transaction and consider the next steps.
Following the meeting, the directors agreed to pursue the necessary approvals to move the restructuring forward.
The company explained that its existing waters and premium beverages business would be transferred for adequate consideration to a new entity before becoming part of Peranel.
Regulators must approve Nestlé's proposed deal
However, the transaction is not yet a done deal.
Nestlé Nigeria must first secure approval from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC), and its shareholders.
These approvals will determine whether the proposed transfer can proceed under Nigeria's regulatory framework.
The company has not disclosed the transaction's financial value or announced a completion date.
It has also not provided a detailed list of the Nigerian beverage brands and products covered by the proposed transfer.
Consequently, it remains unclear whether popular products such as Milo and Nescafé will be affected.
Independent experts assess proposed business transfer
To ensure the transaction receives appropriate scrutiny, Nestlé Nigeria's board examined three independent assessments.
These included an asset valuation report prepared by Niyi Fatokun & Co., a business valuation report by KPMG, and a fairness opinion from Deloitte.
The reports are intended to help directors and shareholders assess the proposed transaction's valuation and financial fairness.
Importantly, Nestlé Nigeria stressed that the restructuring would not change Nestlé S.A.'s shareholding in the Nigerian company.
The company also promised further disclosures as the approval process progresses.
Source: Getty Images
Nestlé Nigeria records stronger profit growth
According to a report by Nairametrics, the proposed restructuring comes at a time when Nestlé Nigeria is enjoying a significant recovery in earnings.
For the nine months ended September 30, 2026, the company reported a 51.5% increase in profit before tax to ₦193.88 billion, compared with ₦127.96 billion in the corresponding period of 2025.
Revenue climbed 10.4% to ₦976.53 billion from ₦884.54 billion, reflecting improved sales performance.
Profit after tax also surged 42.6% to ₦103.37 billion, up from ₦72.48 billion, while earnings per share rose to ₦130.41 from ₦91.44.
The stronger results were supported by improved gross margins and reduced net finance costs.
For investors, attention will now shift to the valuation, regulatory approvals and eventual implications of the proposed business transfer.
Unilever Nigeria food brands face uncertain future
Legit.ng earlier reported that Unilever Nigeria Plc has confirmed that its parent company, Unilever Plc, is combining its global foods business with McCormick & Company, Inc.
The move, announced on March 31, 2026, will likely end local production of popular Nigerian staples such as Knorr cubes, Royco, Lipton tea, and related seasoning and food products.
Source: Legit.ng
