Mentorme:
How is that possible or is he selling his share?
I thought, that flour mill is on stock market ?
If yes!
What happened to other people's share?
Does it mean that other share holders will be forced to sell also?

Olam share holders will see their shares go down while dangote flour shares will go up. At the end you will own Olam shares if you don't sell. There will in most cases scrap the dangote brand.

dangote still dey find money

TheAlchemist:
some weeks back i was sharing my admiration for the owners of biggie foods and drinks, for daring to take on the giant NBC - Coca Cola, 7up and UAC - Gala in a highly saturated market, True Entrepreneurs usually are not afraid of entering a competitive market. The problem with Dangote is that he got a lot of support from government and truth is bitter only thrives in highly monopolistic environment.
The Nigerian Version of so called entrepreneurs are hardly creative simply follow successively trodden paths.

It would not be a crime if Dangote is focused on being referred to as Africa's King of Renewable Energy, for other posters that have expressed their concern about the long time viability of the Dangote refinery, it could be plausible, that is even one of the reasons that Dangote has stated he can only sell his petrol at export price to Nigerians.
I can not be too critical of Dangote, he studied the Nigerian environment and adapted to work within the requirement of the Nigerian environment to survive.
I hope he tries to make a name in the renewable energy industry that is the future.
Anybody can start a business, only those with uncommon vision can sustain it.

I don't get it when people says Alhaji has a lot of support from government, someone whose industries is second largest employer of labor please who should they have supported.The major component of Flour is wheat ,and even indomie seems to the Flour.We are trying to diversify our economy, today we are self sufficient in cement,rice,sugar...hopefully tommorow we will be in milk,chocolates, petrol and whatever we have competitive advantage over.

9jaRealist:


Name one!
Because a US$361 million price tag doesn’t sound like “folding”.

His tomato and tomato paste company folded in less than 2 planting seasons .

PrecisionFx:



His tomato and tomato paste company folded in less than 2 planting seasons .

I heard it has come alive,it is just ironic that a plant as such is surrounded by rice farmers ....Anyway I think the tomato paste is actually facing serious and crazy competition from China all thanks to Nigeria government folding their hands and allowing the paste in through our borders.If he is smart they should just uncouple the entire plant and moved it to a location where the raw materials can be easily sourced.I wonder who is the olodo that design the plant and thought it fit to put the location in kadawa I think.

soberdrunk:
When we tell them Dangote is not a "seasoned" entrepreneur, they will say it's "bad belle", "jealousy", they will say "what do you have", "are you rich" but isn't it becoming very obvious that all the sectors of of his business where he doesn't have "government induced monopolistic power" keeps packing up. First it was juice, then noodles, now flour......

His brother was the main owner of the juice company. He was a minority owner. Your statement is fact otherwise. Dangote depends on government help to make his money

uruba23:

I heard it has come alive,it is just ironic that a plant as such is surrounded by rice farmers ....Anyway I think the tomato paste is actually facing serious and crazy competition from China all thanks to Nigeria government folding their hands and allowing the paste in through our bothers.If he is smart they should just uncouple the entire plant and moved it to a location where the raw materials can be easily sourced.I wonder who is the olodo that design the plant and thought it fit to put the location in kadawa I think.

Before banning imports you have to be sure there is local production. CBN has assured that when planned factories start producing tomatoes will go on the list of items you can't source foreign currency from CBN for

uruba23:

I heard it has come alive,it is just ironic that a plant as such is surrounded by rice farmers ....Anyway I think the tomato paste is actually facing serious and crazy competition from China all thanks to Nigeria government folding their hands and allowing the paste in through our bothers.If he is smart they should just uncouple the entire plant and moved it to a location where the raw materials can be easily sourced.I wonder who is the olodo that design the plant and thought it fit to put the location in kadawa I think.

, it was indeed an Olodo that designed n located the Plant.

If Dangote sabi wetin him de do, his plant will never be located there and naturally, He won't even embark on that project because he obviously can't compete with China.

1 unit of electricity in Nigeria is 30.93.

1 unit of electricity in China is 6.00.

And we have no raw materials here for the business.

uruba23:

I don't get it when people says Alhaji has a lot of support from government, someone whose industries is second largest employer of labor please who should they have supported.The major component of Flour is wheat ,and even indomie seems to the Flour.We are trying to diversify our economy, today we are self sufficient in cement,rice,sugar...hopefully tommorow we will be in milk,chocolates, petrol and whatever we have competitive advantage over.

Nigeria is not self sufficient in sugar. what the sugar producers do is to import raw sugar, refine and bag, as against making use of our sugar cane. so, not less than 80% of the sugar we consume is imported.
As for rice, it is a blatant lie (pure propaganda) that we are self sufficient. locally cultivated and processed rice are not readily available to consumers, while we mostly consume foreign brands that are massively smuggled in through the land boarders.

mfm04622:


Before banning imports you have to be sure there is local production. CBN has assured that when planned factories start producing tomatoes will go on the list of items you can't source foreign currency from CBN for

I might not be able to remember the terms but their is are levies to be charged importer to protect local manufacturer, let agree that the local manufactures capacity is not enough to carter for all our mouth, but the reality is this paste still get in and out compete the local manufacturer.

AbuAmmaar77:

Nigeria is not self sufficient in sugar. what the sugar producers do is to import raw sugar, refine and bag, as against making use of our sugar cane. so, not less than 80% of the sugar we consume is imported.
As for rice, it is a blatant lie (pure propaganda) that we are self sufficient. locally cultivated and processed rice are not readily available to consumers, while we mostly consume foreign brands that are massively smuggled in through the land boarders.

I think you are right about the sugar to some extend, but not all is been imported from Brazil. I think there is a plant around Numan in Adamawa where the plant and process .You only need to go through there during harvest to see the number of people working there if they have not mechanize the whole process.I think we should tell this our governors to help the process too,after all the CBN agro borrower program is there,but they need to explain that to the average farmer in his language so he can access it.The rice you might also be right because every now and then I keep seeing advert for sale of par boiled rice in contonu and I know they are coming here.But that is not to say effort are not been made.

Grundig:
Has anyone noticed that Dangote performs poorly when there's real competition?

Dangote pasta? Dangote noodles? Dansa juice? These are some of his subsidiaries that are performing/performed awfully bad and eventually sold off. Now, it is dangote flour mills

confuse chap dansa is owned by sani gote while pasta noodles are all owned by flour

lol
do u know how many refineries r in Africa?
so they and others worldwide will clear road for him, abi?
and if u think 24/7 power will happen after ur lifetime, I say avoid cursing urself.

Gerrard59:


He is resuscitating the enterprise. Besides, the government intends banning the importation of tomato paste sometime next year.


There's lot to refining crude oil than just petrol and diesel. Moreover, with Africa's population set to balloon ditto the increment of the consumer class coupled with the weak infrastructure for electric vehicles, then he's in the right continent and at the right time.

Additionally, I don't know who lied to you, but Nigeria will not experience 24-hours electricity anytime soon. Not now, not in the next 100 years.

@Topic: Lots of ignoramuses. They don't know that divesting is as important as diversifying or reinvesting. There's more money in the dairy sector where Alhaji plans investing than flour ditto more money in petrol chemicals than pasta. Just as a tree shed away old leaves to bring forth new leaves, Dangote is shedding away smaller businesses to introduce bigger ones.

Simple economics.

go and find out when dangote started building, k?
Nigeria can do with one less ignorant bigot.

stonemasonn:
you guys actually sound jealous, smh pull him down mentality, GEJ denied Dangote license to build a refinery yet he won’t build or fix the dead refineries to standard instead preferring paying huge sums for subsidy, now an Aboki gave his fellow aboki license to build a refinery, you’re shouting monopoly, monopoly monopoly smh.

debaj10:
lol
do u know how many refineries r in Africa?
so they and others worldwide will clear road for him, abi?
and if u think 24/7 power will happen after ur lifetime, I say avoid cursing urself.


go and find out when dangote started building, k?
Nigeria can do with one less ignorant bigot.

building started 2016, jealous pull him down mumu.

9jaRealist:


Not true! Tiger Foods bought the company from Dangote but made a hash of running it...
After a few years of losses, they put it up for sale (it is a NSE LISTED company w/ PUBLIC shareholders) and Dangote bought 65% control.

sir, go to nairametrics and read about it.
however they came into possession, dangote was the chairman.
it failed under him.
simple.
despite taking over, he's selling in less than 3 years.
whatever excuses u make for his sale, people have lost money due to d confidence they placed in him.
enough of defending wrong.
wen 9ja youths go len?

ahiboilandgas:
which enterprise u don create loss or profit making or sme or u still dey write jamb...in no distant time olam will create either a monopoly or oligopoly and will recover all those investment.the population and consumption is there they might even buy up flour mill and indomie ....it might be a 10 years plan


...olam is American firm
....this how billion are made in trade

OLAM is not a American firm, but a Singaporean firm.

Mosedge:
Olam is not an American company. Olam is own by Indians take note. Nigeria wake up.

Olam International is NOT owned by Indians...SMH

It is Singapore-headquartered MULTINATIONAL company that is PUBLICLY-LISTED on the Singapore stock exchange (which means that ANYONE ANYWHERE) can buy its shares. It is also one of the world’s BIGGEST and most prominent agricultural companies, with a presence in EVERY CONTINENT and in over 70 countries across the globe, including ALL of the world’s most advanced economies (such as the US, China, the UK, Germany, etc.). Olam has been in Nigeria for about 30 years, investing across the entire agricultural value chain and space ranging from cashew nuts, sesame seeds, and cocoa to shea nut and rice, poultry and pig hatcheries. It currently has what is reportedly sub-Saharan Africa’s biggest feed mill in Kaduna State, as well as rice farms (uses out-growers as well) and mills, and in agricultural processing has Nigerian operations in dairy products, flour milling (including pasta and noodles), cookies, confectionary, etc. Olam has been in Nigeria before it became “fashionable”.

AbuAmmaar77:

Nigeria is not self sufficient in sugar. what the sugar producers do is to import raw sugar, refine and bag, as against making use of our sugar cane. so, not less than 80% of the sugar we consume is imported.
As for rice, it is a blatant lie (pure propaganda) that we are self sufficient. locally cultivated and processed rice are not readily available to consumers, while we mostly consume foreign brands that are massively smuggled in through the land boarders.

Dangote produce his sugar locally

debaj10:
sir, go to nairametrics and read about it.
however they came into possession, dangote was the chairman.
it failed under him.
simple.
despite taking over, he's selling in less than 3 years.
whatever excuses u make for his sale, people have lost money due to d confidence they placed in him.
enough of defending wrong.
wen 9ja youths go len?

I do not need to go to Nairametrics (an online gabfest journal) for things that I already have knowledge of...

Dangote Flour Mills is a PUBLICLY-LISTED company on the NSE and thus ALL such transactions are PUBLICLY-AVAILABLE information. The sequence of events here was that Tiger Brands bought 63% of Dangote Flour Mills in 2012 for $200 million (with Dangote retaining a 10% equity holding while the remainder remained publicly floated), and subsequently INCREASED its holding again in 2013 to assume “full” control of the company. Bear in mind that the Dangote Mills acquisition was Tiger Brands THIRD acquisition in Nigeria, following its previous acquisitions of Deli Foods plc and UAC Foods. Thus, this was NOT a company that needed a so-called Nigerian “front” to enter or do business in the Nigerian market.

Furthermore, while it retained Dangote as chairman of the board of directors, this was NOT an executive position and virtually all of its executive management staff was brought in from the South African parent company. In fact, Dangote and three other Nigerian directors (including arguably Nigeria’s pre-eminent capital markets lawyer Asue Ighodalo) resigned from the board of the company (which by then had been rebranded as Tiger Consumer Goods Company Nigeria) when the South African parent company refused to financially support the Nigerian operations in the wake of the recession and currency slump in Nigeria in 2015 (the latter resulting in a sharp spike in the Naira value of the companies foreign currency loans).

Ultimately, as the CEO of the South African parent company virtually ‘confessed’ to its shareholders in 2015/2016, the South African management underestimated the level of COMPETITION in that segment of the Nigerian market, and they were therefore quite relieved to exist when Dangote offered in 2016 to inject N10 billion to re-capitalize the company together with a token payment price of $1 (yes, one dollar) to buy off Tiger Foods’ 65% shareholding. In just under 3 years, the company (obviously since rebranded back to its original name of Dangote Flour Mills plc) has since gotten back to profitability (N22 billion gross profits as per last published annual report on the NSE), and is being purchased by one of the world’s biggest multinational agricultural companies at an APPRECIATED value of $362 million.

AbuAmmaar77:

Nigeria is not self sufficient in sugar. what the sugar producers do is to import raw sugar, refine and bag, as against making use of our sugar cane. so, not less than 80% of the sugar we consume is imported.
As for rice, it is a blatant lie (pure propaganda) that we are self sufficient. locally cultivated and processed rice are not readily available to consumers, while we mostly consume foreign brands that are massively smuggled in through the land boarders.

It is quickly becoming less and will ultimately be negligible (if not non-existent)...

A lot of raw sugar is still being imported but large amounts of backward integration is now occurring in the Nigerian sugar industry, with huge sugar plantations (or about to come online) in Adamawa, Kwara, Taraba, Niger, Kebbi, Kogi, Jigawa, etc. In fact, Flour Mills (Golden Penny Sugar) launched a mega plantation in Niger State (Mokwenye) last year and Dangote Sugar is developing an even bigger plantation in Kogi State (in addition to its Savannah Sugar plantation in Numan, Adamawa State), while BUA Group also has a large plantation in Kwara.

Meanwhile, Nigeria is now the BIGGEST rice producer in Africa (and reportedly among the top 15 globally), and thus, even with the unrelenting economic sabotage of smugglers, should achieve virtual self-sufficiency in the near-to-medium term.

PrecisionFx:

His tomato and tomato paste company folded in less than 2 planting seasons .

Sorry to disappoint you buddy...
But it’s back up and running - and even looking to EXPAND (see link below)!

https://www.pulse.ng/bi/strategy/dangotes-tomato-plant-resumes-production-in-a-move-to-cut-paste-imports/hhyy2z2

uruba23:

I don't get it when people says Alhaji has a lot of support from government, someone whose industries is second largest employer of labor please who should they have supported.The major component of Flour is wheat ,and even indomie seems to the Flour.We are trying to diversify our economy, today we are self sufficient in cement, rice,sugar...hopefully tommorow we will be in milk,chocolates, petrol and whatever we have competitive advantage over.

Exactly!

Nigeria has moved from reportedly the world’s second-largest importer of cement (reportedly after only the US), with some of our parents regaling us with tales of the Lagos ports clogged and choked with cement-ladened ships (infamously once described by The Economist magazine as the “Great Ship Armada of Lagos”) bleeding millions of dollars just in shipping demurrage charges and billions more in imported products, into not only being self-sufficient in cement but also becoming an exporter of products within the continent, and thus not only saving wasteful foreign currency depletion but earning foreign currency for the nation, creating jobs and livelihoods (and thus wealth) within Nigeria for Nigerians, generating corporate and income tax (from all those jobs) revenue for the treasury (hopefully to be invested in physical and social infrastructure such as education, healthcare and public transportation). So why shouldn’t the government support such local businesses?

debaj10:
lol
do u know how many refineries r in Africa?
so they and others worldwide will clear road for him, abi?
and if u think 24/7 power will happen after ur lifetime, I say avoid cursing urself

Most African countries import petroleum products as there are less than 50 refineries in the continent.

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/african-refineries/

Regarding 24/7 electricity, it's not a curse. Personally, I desire constant electricity, however, the realities in the power industry tells me that there won't be such in the next 100 years. Life tarries us, I'd re-quote you by 2050 to ask if there is constant electricity across Nigeria.


No be curse, na so the system dey.

NOC1:


you lied bro, he started without political backing, before he came the likes of Ibru was in charge, other people like Eleganza and co was there. He sustained his bussines for him to be where he is today.
there is no successful bussines man (billionaire) without some dirty deals undertone.
Government in all countries ignore them because of the ripple effect on their economy if they go after them without a defined backup plan. All counties play a pivotal role in sustaining th ier successful bussines men.

Abacha helped him with Monopoly

9jaRealist:


Sorry to disappoint you buddy...
But it’s back up and running - and even looking to EXPAND (see link below)!

https://www.pulse.ng/bi/strategy/dangotes-tomato-plant-resumes-production-in-a-move-to-cut-paste-imports/hhyy2z2

It came back up in March 2019, it already folded up like many other businesses he has. It will still fold today as always.

Dangote cement is the only viable business he has and we all know why he succeeded in that aspect.


Sorry to burst ur bubble, Dangote is an overhyped failed businessman, he only thrives in Monopoly.

olas24u:

Abacha helped him with Monopoly

OBJ helped him with cement monopoly.

Gerrard59:


Most African countries import petroleum products as there are less than 40 refineries in the continent.

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/african-refineries/

Regarding 24/7 electricity, it's not a curse. Personally, I desire constant electricity, however, the realities in the power industry tells me that there won't be such in the next 100 years. Life tarries us, I'd re-quote you by 2050 to ask if there is constant electricity across Nigeria.


No be curse, na so the system dey.

I think Africa has more than 40 refineries.

uruba23:

I don't get it when people says Alhaji has a lot of support from government, someone whose industries is second largest employer of labor please who should they have supported.The major component of Flour is wheat ,and even indomie seems to the Flour.We are trying to diversify our economy, today we are self sufficient in cement,rice,sugar...hopefully tommorow we will be in milk,chocolates, petrol and whatever we have competitive advantage over.

Self sufficient in cement rice n sugar?

Who is paying u to write all these?

PrecisionFx:

It came back up in March 2019, it already folded up like many other businesses he has. It will still fold today as always.

Dangote cement is the only viable business he has and we all know why he succeeded in that aspect.

Sorry to burst ur bubble, Dangote is an overhyped failed businessman, he only thrives in Monopoly.

The richest black person EVER is a "failed businessman"?! May the Good Lord shower such "failure" on the rest of us.

Temporarily suspending the operations of a plant is NOT "folding" the business (otherwise GM, GE, P&G, and many of the world's biggest manufacturers have "folded" many times over). Meanwhile, the tomato industry problem was not restricted to Dangote in Nigeria. Erisco Foods also temporarily shuttered its plants, suspended operations and even threatened to relocate to other countries, and Jos Tomato was also adversely affected. Thus, your argument is akin to calling a student a "failure" because ASUU went on strike and he couldn't complete his course. Businesses can only thrive in a healthy regulatory/economic environment - and sometimes the SMART move is to shutter operations. For example, NO rational person would consider the likes of Michellin and Dunlop as "failures" because they elected to exit Nigeria.

PrecisionFx:


Self sufficient in cement rice n sugar?

Who is paying u to write all these?

Lol pay ke someone already corrected me about the rice and sugar but the cement I know we are damn sufficient except of course we are starting our vertical city journey that would require more infrastructure outlay.Anyway chief if you wanna pay I fit send you my bank account.just joking though.

PrecisionFx:

OBJ helped him with cement monopoly.

Abegi, get basic FACTS right....
There's NO monopoly in the Nigerian cement industry!

Nigeria has always had the world’s biggest cement companies operating continuously here since before even many of our parents were even born from the 1950/60s until the present day! The likes of LaFarge, Blue Circle, Holcim (since merged into LaFarge with Blue Circle), Scancem, and Heidelberg have always continuously maintained operations in Nigeria, long before Dangote built his first kiln. What Dangote (and the BUA Group) has achieved to get these foreign competitors to up their game and put more investments into their Nigerian operations (thus, for example, LaFarge has modernized its Shagamu and Ewekoro plants), and upgrade the quality of Nigeria-produced cement from 32.5R grade to 42.5 R (while Dangote is the first/only African plant to produce 52.5R graded cement). Meanwhile, Dangote has expanded into several other African countries, where he not only has to compete with these multinational powerhouses but also with national competitors.

PrecisionFx:

It came back up in March 2019, it already folded up like many other businesses he has. It will still fold today as always.

Dangote cement is the only viable business he has and we all know why he succeeded in that aspect.

Sorry to burst ur bubble, Dangote is an overhyped failed businessman, he only thrives in Monopoly.

Again, sorry to disappoint you with FACTS but where's the "monopoly"?

Cement: LaFarge, Heidelberg, Scancem, BUA, Ibeto, etc.
Sugar: Flour Mills of Nigeria (Golden Sugar), BUA Group, etc.
Flour Mills: FMN (Golden Penny), Honeywell, Olam, etc.
Tomato Paste: Erisco, Jos Tomato, smugglers, etc.
Rice: Stallion Group, Olam International, Croscharis, etc.
Petrochemicals/Fertilizer: Indorama, Notore, NNPC, retc.
Refinery: NNPC, Orient, 28 other licensees, etc.
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