As the year draws to a close, it is time to look back at some of the biggest deals that happened during 2024.
From oil and gas to banking, private equity (PE) and the consumer industry, the Nigerian economy recorded mouth-watering financial transactions.
Some of the biggest deals were chronicled in the DealMakers Africa latest mergers and acquisitions (M&A) report.
Nigeria recorded some of the biggest deals in Africa
Photo credit: mavo
Source: Getty Images
According to the report, Nigeria recorded 48 deals with a total value of $3.8 billion in the first nine months of 2024,
In total, Africa recorded 282 deals valued at $7.25 billion.
Two of the biggest deals in 2024 were recorded in 2024.
Here is a breakdown of M&A in 2024 by region
The biggest deal value recorded is in West Africa, followed by East Africa, led by Nigeria.
Central Africa – $3 million (7 deals)East Africa – $810.05 million (77 deals)North Africa – $1.25 billion (66 deals)Southern Africa – $706 71 million (44 deals)West Africa – $4 billion (83 deals)
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Here is the value of deals recorded in Nigeria in 2024
The deals include oil and gas, banking and consumer.
Shell sale of asset to Renaissance ($2.4bn)
The biggest deal recorded in 2024 was first announced in January 2024. It is also Nigeria’s largest M&A transaction in over a decade.
This is the sale of Shell Petroleum Development Company (SPDC) assets to Renaissance, a consortium that includes five Nigerian upstream oil companies(ND Western, Aradel Holdings, Petrolin Group, First E&P, and Waltersmith Group).
The deal was worth $ 2.4 billion and comprised an initial payment of $1.3 billion and deferred cash payments of $1.1 billion.
The federal government only agreed on the deal on December 18, 2024.
Chappal Energies’ deal with TotalEnergies ($860m)
Chappal Energies secured a deal to acquire TotalEnergies’ 10% stake in the SPDC Joint Venture (JV) in July 2024. This is the second-highest deal recorded in Africa in 2024.
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TotalEnergies’ sale involves 18 oil mining licenses in Nigeria, with other equity stakeholders including NNPC Limited (55%), SPDC (30%), and NAOC (5%).
The acquisition is valued at $860 million and is currently awaiting regulatory clearance.
This transaction also highlights SPDC’s transition to Renaissance and NAOC’s shift to Oando, positioning the JV as a fully Nigerian-owned entity. BusinessDay reports.
Seplat acquisition of MPNU ($800m)
After 30 months of regulatory delays, Seplat completed its $800 million acquisition of Mobil Producing Nigeria Unlimited (MPNU), ExxonMobil’s onshore subsidiary.
The transaction received ministerial approval in December 2024, finalising a pivotal deal in Nigeria’s oil and gas sector.
Oando acquisition of NAOC ($783m)
Oando’s $783 million acquisition of Eni’s Nigerian Agip Oil Company (NAOC) onshore assets became the first deal to secure ministerial approval under the new regulatory environment.
Approved in July and concluded by August, the transaction signals a shift as international oil companies (IOCs) retreat from Nigeria’s onshore space.
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Tolaram’s Acquisition of Guinness Nigeria (N104bn)
In June 2024, Diageo announced its exit from the Nigerian market, selling its 58% stake in Guinness Nigeria to Tolaram Group.
The N104 billion transaction represents a notable divestment in Nigeria’s brewery sector, mirroring Heineken’s earlier exit from Champion Breweries.
Saroafrica’s Takeover of Presco ($125m)
In March 2024, Saroafrica International, through its special-purpose vehicle Oak and Saffron, acquired an 86.7% stake in Presco Plc from SIAT Group.
The move handed majority control to Saroafrica and paved the way for Presco’s $125 million bid for Ghana Oil Palm Development Company (GOPDC), Ghana’s leading oil palm producer.
FBN Holdings’ Sale of FBNQuest Merchant Bank (N465bn)
In September, FBN Holdings sold its investment banking arm, FBNQuest Merchant Bank, to EverQuest Acquisition LLP, a consortium comprising Custodian Investment, Aion Investment, and Evercorp Industries.
The deal aligns with FBN Holdings’ recapitalization goals, with assets valued at approximately N465 billion in its 9M 2024 report.
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Providus Bank and Unity Bank merger (N700bn)
In response to the Central Bank of Nigeria’s recapitalisation directive, Unity Bank and Providus Bank announced a merger in August 2024.
The transaction, supported by a N700 billion facility from the CBN, marks Nigeria’s first banking sector merger in five years, aimed at bolstering financial resilience.
Another foreign company leaves Nigeria after 31yrs
Ealier Henzodaily.ng reported that Norwegian energy giant Equinor has decided to end its business in Nigeria after 31 years, selling off its assets.
The company sold its Nigerian assets, including an oil field, to Chappal Energies, a Nigerian Indigenous energy company, in a deal worth $1.2 billion
In a statement, Equinor cited strategic realignment as the reason for its decision to divest from Nigeria.
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Source: Henzodaily.ng