Dangote Noodles Limited, a unit of Nigerian company Dangote Flour Mills, has sold two production lines for $12.26 million, the company said on Tuesday.
The company, controlled by Africa’s richest man, Aliko Dangote, said the two units were sold to rival pasta maker De United Foods Industries. The purchasing company will continue marketing the products under the brand name “Dangote Noodles” for two years, before changing the brand name.
It is also expected to acquire, according to Reuters, a stock of shares with an aggregate value of 383.94 million naira ($ 1 million).
This sale will allow Dangote Flour Mills to focus on the production of flour and pasta, much more strategic business segments, and De United Foods Industries to consolidate its presence on a Nigerian noodle market, where it already owns 70% shares.
Dangote Group in July said it plans to invest $3.8 billion in sugar and rice and $800 million in dairy products in the next three years as the company seeks to expand.
The 60-year-old Nigerian cement tycoon has a net worth of $12.1 billion.