Nestlé Nigeria Seeks Approval to Transfer Waters and Premium Beverages Unit

Nestlé Nigeria Plc is seeking regulatory and shareholder approval to transfer its waters and premium beverages business to a new company that will become part of Peranel. The new entity will join Peranel, a joint venture owned equally by Nestlé S.A. and Platinum Equity.

The company disclosed the plan in a notice to the Nigerian Exchange Limited. It said its ownership arrangement will remain unchanged. The transaction is not yet complete. SEC, FCCPC and shareholder approvals are still required. Nestlé has not disclosed the deal value, completion date or the full list of affected brands.

Board review and approvals

Nestlé Nigeria said its board met on October 28, 2026, to review management's report on the proposed transaction and consider next steps. The directors agreed to pursue the necessary approvals. The business will be transferred for adequate consideration to a new entity before it becomes part of Peranel. The arrangement follows a July 30, 2026 announcement that Nestlé S.A. and Platinum Equity had entered 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.

The transfer must secure approval from the Securities and Exchange Commission, the Federal Competition and Consumer Protection Commission and shareholders. These approvals will determine whether the proposed transfer can proceed under Nigeria's regulatory framework. Nestlé Nigeria has not provided a detailed list of Nigerian beverage brands and products covered by the proposed transfer. It remains unclear whether popular products such as Milo and Nescafé will be affected. The company stressed that the restructuring would not change Nestlé S.A.'s shareholding in the Nigerian company. It promised further disclosures as the approval process progresses.

Valuation checks

The board examined three independent assessments. These were an asset valuation report by Niyi Fatokun & Co., a business valuation report by KPMG and a fairness opinion from Deloitte. The reports are meant to help directors and shareholders assess the transaction's valuation and financial fairness.

Earnings backdrop

The proposed restructuring comes as Nestlé Nigeria reports stronger earnings. For the nine months ended September 30, 2026, profit before tax rose 51.5% to ₦193.88 billion, compared with ₦127.96 billion in the same period of 2025. Revenue increased 10.4% to ₦976.53 billion from ₦884.54 billion. Profit after tax rose 42.6% to ₦103.37 billion from ₦72.48 billion. Earnings per share rose to ₦130.41 from ₦91.44. The results were supported by improved gross margins and reduced net finance costs.

For investors, attention will shift to the valuation, regulatory approvals and eventual implications of the business transfer. For consumers and Nigerian businesses, the key question is whether the new structure will affect the availability and pricing of the affected beverage brands. That will depend on the details Nestlé Nigeria has not yet disclosed.

Separately, 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.