Mergers & Acquisition: Nigeria Records 23 Mergers in 10 Years

2 Comments » November 19th, 2003 posted by // Categories: Important Documents

Mergers & Acquisition: Nigeria Records 23 Mergers in 10


November 19, 2003
Franklin Alli

mergers & acquisition exercise in the past ten years,” the Chief Executive
Officer of Investment Banking & Trust Company Limited, Atedo N. A. Peterside,

Most of the participated companies are quoted on the
Nigerian Stock Exchange. They range from the Conglomerates sub sector to
Insurance, Banking Packaging, Healthcare, Textiles, Food & Beverages sub sectors
as well as Oil & Gas (Petroleum Marketing) sub sector.

Speaking at a seminar on mergers and acquisitions
organised by the Securities and Exchange Commission in conjunction with the
Association of Issuing Houses of Nigeria, last week in Lagos, he hinted that
between 1993 -2003, there have been mergers and acquisitions in several sectors
of the economy of which Investment Banking & Trust Company Limited (IBTC) acted
as financial adviser in many of these merger transactions.

In the conglomerates sub sector, for instance, the
following companies merged: A. G. Leventis Company Nigeria PLC with Leventis
Technical PLC and Leventis Motors PLC, merger of Unilever Nigeria PLC with Lever
Brothers Nigeria PLC. The restructuring of UAC of Nigeria PLC resulted in the
creation of Unilever Nigeria Limited and Tractor & Equipment Nigeria Limited,
merger of Thermocool Engineerring Company PLC with Parterson Zochonis Industries
PLC, the merger of UAC which resulted in the transfer of all the previous
investment properties previously managed and maintained by UAC’s Property
Division to UACN Property Development Company PLC, and merger of Paterson
Zochonis Industries PLC with Paterson Zochonis Nigeria PLC, Ekopak Nigeria PLC
and Grove Properties Limited.

The Insurance sub sector of the economy in 1994, witnessed
the merger of United Nigeria Insurance Company PLC with United Nigeria Life &
General Insurance PLC, while the banking sub sector in 1995, there was
acquisition of 75 per cent of Citi Trust Merchant Limited ( now Union Merchant
Bank Limited) by Union Bank of Nigeria PLC, acquisition of 70 per cent of
Meridien Equity Bank of Nigeria Limited, now Equity Bank of Nigeria Limited, by
Nigerian Intercontinental Merchanmt Bank Limited (now Intercontinental Bank
PLC). The banking sub sector also witnessed the acquisition of 100 per cent of
Magnum Trust Bank Limited by Guaranty Trust Bank Limited, acquisition of 100 per
cent of Nigeria-Arab Bank PLC ( now Assurance Bank PLC) by National Insurance
Corporation of Nigeria, acquisition of 48.9 per cent of Stanbic Merchant Bank
Nigeria Limited by SBIC Africa Holdings Limited, and acquisition of 51 per cent
of Continental Trust Bank by Standard Trust Bank PLC. The Packaging sub sector
in 1997 also embraced merger.

In this sub sector, there was merger of CarnaudMetalbox
Nigeria PLC with Canmakers Nigeria Limited and The Crown Cork and Seal Company
Nigeria Limited, while in the Healthcare, transaction took place between
Smithkline Beecham Nigeria PLC with Sterling Products Nigeria PLC. In 2001, ther
was merger of United Nigerian Textiles PLC with Nichemtex Industries PLC.
Similarly, there was merger of Nigerian Bottling Company PLC with Sapanda
Industries Limited, and merger of Nestle Foods Nigeria PLC with Nestle Nigeria
Limited. However, major M & A in the Oil and Gas occurred between 2000-2003.
These include the acquisition of 30 per cent of Unipetrol Nigeria PLC by Ocean &
Oil Services Limited, acquisition of 60 per cent of National Oil and Chemical
Marketing PLC by Conpetro Limited, acquistion of 30 per cent of African
Petroleum PLC by Sadiq Petroleum, merger of Total Nigeria PLC with Elf Oil
Nigeria Limited, and merger of Unipetrol Nigeria PLC with Agip Nigeria PLC,
among others.


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2 Responses to “Mergers & Acquisition: Nigeria Records 23 Mergers in 10 Years”

  1. Obatomi Olorunshola Theophilus says:

    These is a greater evil on any affected nation. God save our nation.

  2. Godwin Edward Adeyemi says: Investmt.Insurance Policy no.L/4295/HO
    Dated 1/04/1993
    Company= The Gate-Way Insurance Co.Ltd at Ilorin
    How can I get my money back which has Matured.
    08056578439 Thank you.

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