Nestlé Nigeria Plc has begun moves to transfer its waters and premium beverages business to a new company under a proposed $5.6bn global joint venture between its parent company, Nestlé S.A., and investment firm Platinum Equity.
The proposed transfer, which requires regulatory and shareholder approval, will see the Nigerian operations moved to a newly established entity before it becomes part of Peranel, a 50:50 joint venture between the two international partners.
In a notice to the Nigerian Exchange Limited on Friday, Nestlé Nigeria said its board met on October 28 to review developments concerning the proposed restructuring and authorised management to seek the necessary approvals.
The company said the transaction would require clearance from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC) and its shareholders.
Nestlé Nigeria said the transfer would be made for adequate consideration, adding that it would not affect its parent company's ownership of the Nigerian subsidiary.
The board also reviewed an asset valuation report by Niyi Fatokun & Co., a business valuation by KPMG and an independent fairness opinion prepared by Deloitte.
The proposed transaction follows an agreement announced on July 30 by Nestlé S.A. and Platinum Equity to establish Peranel as a dedicated business for Nestlé's global waters and premium beverages portfolio.
The new venture will bring together more than 30 brands sold in 120 countries, including S.Pellegrino, Perrier, Acqua Panna and Nestlé Pure Life.
The global business has an estimated enterprise value of $5.6bn and is expected to be headquartered in Paris, with completion of the wider transaction projected for the first half of 2027, subject to regulatory approvals and employee consultation processes.
The restructuring comes as Nestlé Nigeria reported a 51.5 per cent increase in profit before tax to N193.88bn for the nine months ended September 30, 2026.
Its revenue rose by 10.4 per cent to N976.53bn, while profit after tax increased by 42.6 per cent to N103.37bn.
The company said it would provide further updates as the approval process progresses.
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