Nigerian conglomerate UAC Plc has signed an agreement to acquire the minority shares of its unlisted subsidiary UAC Foods from South Africa’s Tiger Brands next month, it said.

The sale makes Tiger Brands the latest South African business to exit Nigeria, Africa’s most populous nation and largest economy, where economic weakness last year curbed consumer demand, input cost rises have cut into margins and currency volatility has further eroded profits.

UAC, with interests in real estate, paints and livestock feed, said it will operate Tiger Brands’ food company, after the acquisition closes in September.

Tiger bought 49% of UAC’s food business in 2010, when Nigeria was touted as the next growth spot for retailers.

Other South African companies that expanded into Nigeria and have since decided to leave are Shoprite and Massmart .

Recession in Nigeria in 2020 sapped demand, although the economy has recovered, growing 5% in the second quarter of this year.

Reuters