Wilmar International, TGI Group form $12bn joint venture to build West Africa’s agri and food businesses

Wilmar International and TropicalGeneral Investments (TGI) Group have entered into definitive agreements to combine their respective operating businesses in Nigeria and the Republic of Benin in a landmark 50:50 joint venture aimed at building a fully integrated food and agribusiness platform across West Africa.

The transaction will bring together a broad portfolio of complementary businesses across the food value chain, from farming to processing and distribution. The combined platform will serve an addressable market estimated at approximately US$12 billion across the focus categories in Nigeria and the Republic of Benin.

Under the agreement, both companies will contribute their existing operating food businesses and brands into the joint venture, which will be jointly owned on an equal basis by Wilmar and TGI Group. The companies said the objective is to improve access to affordable, high-quality food products across West Africa by combining global expertise with established local manufacturing and distribution capabilities.

Commenting on the transaction, Mr Kuok Khoon Hong, Chairman& CEO of Wilmar, in a joint statement said, “Nigeria and theRepublic of Benin are key consumer markets in Africa, supportedby a population of more than 260 million, and sometimes experience structural deficits in both food production and distribution. The combination of Wilmar’s integrated palm oil and specialty fats capability and its global scale in food staples & consumer goods with TGI Group’s manufacturing scale, established consumer brands and nationwide distribution platform,creates a uniquely positioned business to serve African consumers and to contribute to the long-term development of the region.”

Founder and Chairman of TGI Group, Mr Cornelis G. Vink MFR,in the statement also said, “For more than four decades, TGI Group has built a leading position in Nigerian food manufacturing and distribution. The combination with Wilmar’s Nigerian businesses brings together two highly complementary platforms built on delivering high-quality locally manufactured food products acrossthe sub-region. This partnership will leverage Wilmar’s global scale and expertise as well as TGI’s local knowledge to deliver innovative food solutions across Africa.”

Mr Farouk Gumel, Vice Chairman of TGI Group, also stated, “Byintegrating Wilmar’s upstream and downstream palm oil capabilities, processing expertise, portfolio of trusted consumer brands with TGI Group’s manufacturing scale, local market expertise, established consumer brands and nationwide route-to-market, we are building a platform that will deepen domestic value addition, support smallholder farmers, create jobs and contribute meaningfully to Nigeria’s food security.”

Mr Santosh Pillai, Wilmar’s Africa Head, also added stated “This transaction represents a compelling strategic fit for Wilmar in Africa. TGI Group brings strong local execution capabilities,established consumer brands and a deep distribution network, which are highly complementary to Wilmar’s upstream andprocessing strengths as well as portfolio of trusted brands.Together, we are creating an integrated platform with the scale, local insight, and operating depth to better serve consumers in Nigeria and the Republic of Benin to support the long-term development of the region’s food and agriculture sectors.”

Completion of the transaction is subject to customary regulatory approvals, including merger control clearances, and is expected to be finalised during the financial year ending 31 December 2026.