JUST IN: SEC Blocks Merger Of Nascon Allied, Dangote Sugar, Dangote Rice

The Securities and Exchange Commission (SEC) has blocked the proposed merger between Nascon Allied Plc, Dangote Sugar Refinery Plc and Dangote Rice Ltd.

The development is coming barely nine months after the three companies agreed on a merger, a move which was believed to trigger fears among competitors like BUA Foods Plc.

The merger was planned to be an internal restructuring executed through a Scheme of Merger, under Section 711 of the Companies & Allied Matters Act, 2020 and other applicable rules and regulations.

But in the twist of the event, Nascon Allied said “A decision has been taken to suspend the said merger at this time.

“The suspension is due to the comments and recommendation of the Securities and Exchange Commission centered around the current non-operational status of Dangote Rice Limited.”

Dangote Industries Ltd had projected that the transaction would consolidate and solidify the Group’s market position and ultimately reposition it to harness future opportunities in the food industry.

The merger was to help the companies to compete with BUA Foods which has a market capitalisation of N6.8tn as of April 18, 2024.

Nascon Allied has a market capitalisation of N139.2bn while Dangote Sugar’s market capitalisation stood at N583.1bn.