Dangote Noodles Limited, a unit of Dangote Flour Mills, has sold two production lines in Ikorodu and Calabar to rival pasta maker, De United Foods Industries, maker of Indomie Noodles.
The transaction is valued at N3.75 billion ($12.26 million).
De United said it has signed an agreement with Dangote Noodles to buy the plants. It would also buy stock worth N383.94 million.
Nigeria’s noodle market is fiercely competitive and De United with a market share of around 70 percent is seeking to consolidate the sector.
Privately-held Dangote Industries Limited, with interests in agriculture, real estate and truck assembly, bought back the flour unit it had sold to South Africa’s Tiger Brand for $1 in 2015 after it posted losses.
Dufil Prima Foods, the parent of De United Foods, is a privately-held company set up over two decades ago, which has grown to become the largest pasta maker in west Africa.
De United said the transaction had been approved by both companies and the regulators.Please subscribe to our newsletter