Dangote Sugar, NASCON, Dangote Rice Merger Suspended

Nascon Allied Industries Plc, a major player in the Nigerian market, has announced the suspension of its much-anticipated merger with Dangote Sugar Refinery Plc and Dangote Rice Limited.

Following initial plans revealed on August 30, 2023, the announcement was made to the Nigerian Exchange Limited and the investing public.

The proposed merger, which significantly boosted the share prices of the involved companies last year, was put on hold due to recommendations from the Securities and Exchange Commission (SEC).

The SEC’s concerns primarily revolved around Dangote Rice Limited’s current non-operational status, prompting a reevaluation of the merger plans.

In a statement released by Nascon, the company expressed its gratitude to all stakeholders for their support and promised to keep the public updated on any further developments.

“Nascon wishes to express its appreciation to all its stakeholders and will keep the public informed of any developments as they arise,” the statement read.

The suspension has stirred reactions within the investment community, highlighting broader concerns regarding corporate governance in the Nigerian market.

Rufybaba, a noted investment management and finance expert, voiced his criticisms on his “X” account (formerly Twitter), stating, “These are some of the issues with the Nigerian market, and why investors will not take the market seriously. Corporate governance is thrown into the gutters.”