Nestlé Nigeria Plc is preparing to transfer its waters and premium beverages business to a newly established company that will become part of 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 (NGX), stating that it is seeking regulatory and shareholder approval for the move.
The proposed transaction 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.
Board Approves Next Steps
Nestlé Nigeria said its board met on October 28, 2026, to review management's report on the proposed transaction. 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. Nestlé Nigeria stressed that the restructuring would not change Nestlé S.A.'s shareholding in the Nigerian company.
Regulatory Approvals Required
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 Assessments Commissioned
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.
Stronger Profit Growth Reported
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.
