SINGAPORE — Wilmar International is set to acquire full ownership of Nigeria-based palm oil company PZ Wilmar by purchasing the remaining 50% stake from joint-venture partner PZ Cussons for US$70 million, according to an announcement made on Wednesday, June 18.
Once the deal is finalized, Wilmar will hold 100% equity in the palm oil business, marking a strategic expansion of its footprint in Nigeria’s agribusiness sector.
Expanding in a High-Potential Market
Chairman and CEO Kuok Khoon Hong stated that Nigeria’s growing population of over 200 million offers significant opportunity in food and nutrition, making the country a key investment destination for Wilmar.
“We are bullish on the long-term potential of Nigeria’s palm oil sector, given the country’s large and growing population and suitability for palm cultivation,” said Kuok.
The group plans to continue developing both upstream plantations and downstream processing facilities, strengthening its presence in the country’s edible oil value chain.
Deal Timeline and Structure
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Transaction Value: US$70 million
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Funding: Internal resources
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Expected Completion: Q4 2025 (pending regulatory approvals)
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Impact on Wilmar Financials: Not expected to materially affect Wilmar’s consolidated net tangible assets or earnings per share for FY2025
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Impact on PZ Wilmar Operations: No major changes expected to personnel or daily operations
Historical Context
Established in 2010, PZ Wilmar was a 50:50 joint venture between Wilmar International and UK-listed PZ Cussons. The company produces and markets Mamador and Devon King’s cooking oil brands in Nigeria and holds minority stakes in two Nigerian palm plantations, which Wilmar already majority owns.
Following the acquisition, PZ Wilmar will undergo a name change, though the structure of PZ Cussons Nigeria, a separate entity, remains unaffected.
External Challenges
This acquisition comes amid broader scrutiny of Wilmar’s operations in other regions. In April, the company confirmed it was cooperating with Indonesian authorities investigating an alleged palm oil graft case involving its subsidiaries. Authorities had seized assets worth 11.8 trillion rupiah, though Wilmar stated it is assisting with ongoing inquiries.
Market Response
Despite the strategic expansion, Wilmar’s shares fell 3% on Wednesday, hitting their lowest level in over five years at S$2.89, before settling at S$2.92 by early afternoon trading.
Outlook
With this acquisition, Wilmar is doubling down on long-term investments in Nigeria’s agrifood sector, positioning itself to meet rising domestic demand while leveraging its control across the supply chain. The move also reflects Wilmar’s confidence in Nigeria’s potential as a key palm oil production and consumption hub in Africa.
