PZ Cussons PLC has formally announced its exit from Nigeria’s palm oil sector following a definitive agreement with Wilmar International Limited.

Under the terms of the deal, Wilmar will acquire PZ Cussons’ 50% equity stake in their joint venture, PZ Wilmar Limited, for a cash consideration of $70 million.

The development was revealed in a joint statement issued by both companies.

Completion of the transaction is subject to the necessary regulatory and corporate approvals.

According to the statement, upon completion of the transaction, Wilmar will assume full ownership of PZ Wilmar, holding 100% of its equity.

It also noted that the company’s name will be changed after the transaction is finalized, with a formal announcement on the new name to be made in due course.

The statement further emphasized that the completion of the transaction remains subject to several relevant approvals but is expected to occur in the final quarter of calendar year 2025.

Both companies noted that the deal between the existing joint venture partners provides a solid foundation for continuity and a seamless transition of ownership, with no significant impact anticipated on personnel or operations.

Commenting on the development, Wilmar Chairman & CEO, Mr Kuok Khoon Hong said, “We would like to thank PZ Cussons for their cooperation and support since the inception of this joint venture in 2010, which has contributed to its success and leading market position in Nigeria.

“Wilmar is acquiring PZ Cussons plc’s 50% stake in PZ Wilmar as we are bullish on the long-term potential of Nigeria’s palm oil sector, given its large and growing population and suitability for palm cultivation.

“The Nigerian market’s strong demographics, with more than 200 million consumers, offer a significant opportunity for growth in food and nutrition. It is Wilmar’s intention to continue developing the upstream palm plantation and downstream businesses in Nigeria. As a global industry leader, Wilmar is well-positioned to invest and realise these opportunities following the completion of the transaction.

“However, we recognise the importance of having strong local partnerships in the markets where we operate and will be looking for a suitable local partner for the business.”

The CEO of PZ Cussons PLC, Jonathan Myers, described the joint venture with Wilmar in Nigeria as a long-standing and mutually beneficial partnership.

He expressed gratitude to Wilmar’s leadership for their collaboration and commended PZ Wilmar employees for their dedication and strong performance over the years.

Established in 2010 as a joint venture between PZ Cussons PLC (UK) and Wilmar, PZ Wilmar is regarded as one of the largest sustainable palm oil businesses in Nigeria.

The statement added that the joint venture also holds minority stakes in two palm oil plantations in the country, both of which are majority-owned by Wilmar.