The company's reasons for leaving include high debt ratios, tough economic conditions, fluctuating exchange rates, rising inflation and high energy costs.
African Industries and India-based Bharti, which operates in telecommunications, manufacturing, insurance, real estate, hospitality and food, have reportedly submitted offers to acquire Aarti Steel for between $50 and $100 million. The acquisition process is expected to be completed in a few months.
Another source said that Aarti had asked investors to submit their profiles, aiming to transfer the company to a credible investor.
Aarti Steel's withdrawal will be the sixth major company to leave Nigeria in the first half of 2024. Previously, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria and Diageo PLC also exited the country.
Experts emphasized that Aarti's withdrawal will further negatively impact the country's investment attractiveness and its $1 trillion GDP target.
"The image created by the continuous exit of multinational companies from the economy is a serious concern," said Muda Yusuf, CEO of the Private Enterprise Promotion Center.
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