UAC of Nigeria Buys CHI Limited from Coca‑Cola

UAC of Nigeria Plc announced a landmark agreement to acquire CHI Limited, better known for its Chivita and Hollandia brands, from The Coca‑Cola Company. 

This strategic move marks UAC’s entry into Nigeria’s leading dairy and juice market and underscores its ambition to deepen its footprint in the fast‑moving consumer goods (FMCG) sector.

Strategic Acquisition Bolsters UAC’s FMCG Portfolio

By adding CHI Limited to its stable, UAC gains market leadership across multiple beverage categories. Hollandia dominates the evaporated milk and drinking yoghurt segments, while Chivita holds the top spot in Nigeria’s fruit‑juice market.

The deal diversifies UAC’s offerings and positions it to capitalise on growing local demand for value‑added dairy and juice products.

Expert Advisors Underpin Deal Execution

To ensure a seamless transaction, UAC engaged the expertise of Fasken Martineau LLP and Templars as its legal advisors.

On the other side, Citi served as exclusive financial advisor to The Coca‑Cola Company, with McDermott Will & Emery acting as its legal counsel. This collaboration of top‐tier advisors reflects the deal’s complexity and significance for both parties.

Since its inception, CHI Limited has cultivated a strong brand reputation through consistent product quality and innovation. Eelco Weber, Managing Director of CHI, praised his over 5,000‐strong workforce for earning the company “Gold‑rated Great Place to Work” status.

He expressed confidence that, under UAC’s stewardship, the business will unlock “exciting opportunities for further growth”.

Shared Vision and Growth Potential

Fola Aiyesimoju, UAC’s Group Managing Director, emphasised the acquisition’s alignment with UAC’s pan‑African growth strategy. He highlighted the strong legacy of excellence and innovation at CHI, noting that UAC intends to build upon this foundation to drive further market expansion and product development.

For UAC, the transaction represents a strategic milestone that immediately elevates its FMCG credentials. For The Coca‑Cola Company, divesting CHI aligns with its asset‑light model, allowing it to refocus on core, scalable brands.

Coca‑Cola has simultaneously reaffirmed its commitment to Nigeria by pledging a $1 billion investment over the next five years, contingent on a predictable operating environment.

Regulatory Approval and Industry Impact

While subject to regulatory approval, the acquisition is poised to reshape Nigeria’s beverage landscape. UAC’s expanded portfolio and Coca‑Cola’s continued capital infusion signal confidence in Nigeria’s consumer market.

The deal also sets a precedent for future mergers and acquisitions in the region’s FMCG sector, encouraging both local and international players to explore strategic partnerships.