South African billionaire family takes over Nigeria’s biggest beverage can maker

The family of South African billionaire Nicky Oppenheimer is set to expand their wealth after signing a new deal with Affirma Capital, a Private Equity firm.

The billionaire's son, Jonathan Oppenheimer, took a bet on revival in Africa's largest economy as it acquired complete control of Nigeria's biggest beverage can-maker, GZ Industries Ltd.

Through Oppenheimer Partners Ltd, the billionaire's son acquired the shares from Affirma Capital, according to a statement seen by Bloomberg.

As a supplier of cans to businesses like Coca-Cola Co., the can-making company's 37.5% ownership will now be controlled by the new billionaire buyer.

The billionaire family company already owned a majority of 62.5% of GZI before the most recent acquisition.

This comes at a time when some companies are leaving Nigeria, citing a challenging environment.

Legit.ng reported that Nigeria is set to witness the exit of another company, Equinor Nigeria Energy Company, after the recent announcement by GSK and Sanofi-Aventis to leave the country.

Despite this, the billionaire sees an opportunity as it looks to tap into President Tinubu's $1 trillion economy target in three years.

Billionaire family could replicate growth facilitated in South Africa

The acquisition would expectedly yield significantly for the family that founded mining giant Anglo American Plc.

The billionaire household turned De Beers into the world's largest diamond producer, thereby shaping GZI's growth in sub-Saharan Africa.

Research published by Nature Communications shows that urban-educated adults in the region consume 12.4 servings of sugary drinks per week.

In 2018, Oppenheimer Partners made its initial investment in the company when GZI established a manufacturing in South Africa, where it currently holds a roughly 20% market share.

It faces competition from Nampak Ltd., a losing company that is restructuring debt and selling assets. 2012 saw Affirma's initial investment in GZI.