Nestlé Nigeria
Nestlé Nigeria Plc has commenced the process of obtaining regulatory and shareholder approval to transfer its existing waters and premium beverages business to a new company that will become part of Peranel, a joint venture between its parent company, Nestlé S.A., and global investment firm Platinum Equity.
The proposed transaction, disclosed in a notice to the Nigerian Exchange Limited (NGX) on October 30, 2026, will involve transferring the Nigerian business to a newly established company for adequate consideration before incorporating it into the joint venture.
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The development follows an October 28 board meeting at which Nestlé Nigeria's directors reviewed management's report on the transaction and resolved to seek the necessary approvals from the Securities and Exchange Commission (SEC), the Federal Competition and Consumer Protection Commission (FCCPC) and the company's shareholders.
The proposed restructuring forms part of a wider international arrangement designed to establish a dedicated business for Nestlé's water and premium beverages portfolio.
Nestlé Nigeria Seeks SEC and FCCPC Approval
Nestlé Nigeria said the proposed transfer remains subject to regulatory clearance and shareholder approval.
Under the arrangement, the company's existing waters and premium beverages operations will move to a newly established entity, which will subsequently become part of Peranel.
The board reviewed developments since the initial announcement in July 2026 and authorised management to pursue the approvals required to complete the transaction.
The company also clarified that the proposed restructuring would not change Nestlé S.A.'s shareholding in Nestlé Nigeria.
This means the transaction concerns the transfer of a business operation rather than a change in the ownership structure of Nestlé Nigeria itself.
The regulatory review will determine whether the proposed arrangement satisfies the applicable requirements governing the transfer and restructuring of the business.
KPMG, Deloitte Review Proposed Business Transfer
As part of its assessment, Nestlé Nigeria's board considered independent valuation and fairness reports relating to the proposed transaction.
The reports included an asset valuation prepared by Niyi Fatokun & Co., a business valuation conducted by KPMG and an independent expert fairness opinion prepared by Deloitte.
These assessments provide the board with independent professional evaluations of the assets and business involved in the proposed transfer, including the consideration attached to the transaction.
The involvement of independent valuation and advisory firms is significant because the restructuring involves transferring an established business into a joint venture with an external investment partner.
The reports are intended to support the board's assessment of the transaction's commercial terms and provide a basis for evaluating whether the proposed consideration is fair.
Peranel Joint Venture Brings Together Nestlé and Platinum Equity
The proposed Nigerian transaction forms part of a broader international agreement announced on July 30, 2026, by Nestlé S.A. and Platinum Equity to establish Peranel as a 50:50 joint venture.
The new company will house Nestlé's global waters and premium beverages business, bringing together more than 30 brands sold across 120 countries.
Its portfolio includes established international brands such as S.Pellegrino, Source Perrier, Acqua Panna and Nestlé Pure Life, alongside other local water and premium hydration brands.
Peranel is expected to operate as a dedicated business with greater strategic focus and flexibility to invest in its brands, product development and expansion opportunities.
The global transaction assigns an enterprise value of approximately $5.6 billion to the business. Peranel is expected to be headquartered in Paris and led by Muriel Lienau, the current chief executive of Nestlé's waters and premium beverages business.
The transaction remains subject to applicable regulatory approvals and employee consultation processes, with completion expected in the first half of 2027.
For Nigeria, the proposed transfer will bring the country's existing waters business into the new international structure, subject to the required local approvals.
Nestlé Nigeria Records 51.5% Increase in Nine-Month Profit Before Tax
The proposed restructuring comes as Nestlé Nigeria reports improved financial performance for the nine months ended September 30, 2026.
The company recorded a 51.5% increase in profit before tax to ₦193.88 billion, compared with ₦127.96 billion in the corresponding period of 2025.
Revenue increased by 10.4% to ₦976.53 billion from ₦884.54 billion, while profit after tax rose by 42.6% to ₦103.37 billion, compared with ₦72.48 billion a year earlier.
Earnings per share also increased to ₦130.41 from ₦91.44.
The improved performance reflected stronger gross margins and lower net finance costs, indicating an improvement in the company's profitability during the reporting period.
The financial results provide additional context for the proposed restructuring, although Nestlé Nigeria has not indicated that its improved earnings directly influenced the decision to transfer the business.
Regulatory Approvals Remain Key to Completion
The proposed transfer represents a significant restructuring of Nestlé Nigeria's waters and premium beverages operations within a wider international investment arrangement.
However, the transaction cannot proceed to completion in Nigeria until the company secures the required approvals from the SEC, FCCPC and shareholders.
The board's review of independent valuation reports and its decision to pursue regulatory clearance mark important steps towards implementation.
Nestlé Nigeria said it would provide further updates in line with applicable regulatory and disclosure requirements.
The next stage will therefore depend on the outcome of the approval process and the broader timeline for establishing Peranel, which is expected to begin operations as a dedicated global waters and premium beverages business in 2027.
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