Guinness Nigeria Plc, one of Nigeria’s leading beverage makers, has acquired the distribution rights of Diageo Plc’s International Premium Spirits (IPS) brands in Nigeria.

The acquisition, worth N2.35 billion, is considered a strategic move in the company’s effort to deepen its operations and grow its balance sheet in 2016 and beyond.

Under the deal, Guinness Nigeria would also take over various Diageo assets, including Diageo Brands Nigeria Limited, the wholly-owned business currently marketing and distributing the IPS brands in Nigeria.

Guinness Nigeria said in a notice to its shareholders that the transaction, which was subject to normal regulatory approvals, would be concluded by December 31, 2015. The agreement is expected to become effective on January 1, 2016.

Guinness Nigeria Managing Director/Chief Executive Officer, Peter Ndegwa, said the distribution rights agreement would facilitate the company’s ambition to be the most trusted and respected consumer products’ company in Nigeria.

He said the transaction would also leverage Guinness Nigeria’s strength of unparalleled portfolio of adult premium non-alcoholic drinks (APNADs), ready to drink (RTDs) as well as spirits.

“The integration of the Diageo IPS brands with the Guinness Nigeria brand portfolio best fits our strategy of filling the gap in our total beverage alcohol portfolio, and allows us to compete across segments within the market,” Mr. Ndegwa explained.