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Dangote Vs BUA; The Sugar Wars Unredacted - Report

Apr 26, 2021   •   by Proshare Research   •   Source: Proshare   •   eye-icon 447 views

At the heart of the fistfight between Dangote and Flour Mills in the blue corner and BUA Sugar Refinery in the red corner has been the desire for market dominance, pricing control, and business sustainability. Aliko Dangote's standard business philosophy has, allegedly always been, to be the single most important supplier or manufacturer in any market he chooses to invest in, where he cannot be number one, he must be a number two breathing hotly down the neck of whosoever is, in his opinion, the temporary number one. The corollary of this market mindset is that the business maven would not permit a corporate rival either eat into his pre-eminent market share or cut into his usually sizable business margins (for example before 2019 Dangote's operating margin on cement was stable at roughly 60% (or approximately the same percent as its market share), but the margin has more recently collapsed to below 55% mainly because of aggressive market share acquisition by? Yes, you guessed it, BUA)

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