UAC
UAC of Nigeria PLC has announced a landmark agreement to acquire CHI Limited, a leading Nigerian food and beverage company known for its Chivita and Hollandia brands, from The Coca-Cola Company. This strategic move marks UAC’s entry into Nigeria’s dairy and juice market and strengthens its presence in the fast-moving consumer goods (FMCG) sector.
CHI Limited is a major player in Nigeria’s food and beverage industry, with a portfolio spanning value-added dairy products, juices, nectars, still drinks, and snacks. Its flagship brands, Hollandia and Chivita, dominate the evaporated milk and drinking yoghurt markets and the fruit juice segment, respectively. The acquisition represents a strategic milestone in UAC’s growth agenda, expanding its presence in Nigeria’s FMCG sector and positioning it for long-term sustainable growth.
UAC’s Group Managing Director, Fola Aiyesimoju, expressed enthusiasm about building on CHI Limited’s legacy of excellence and innovation. The company’s leadership is confident that the acquisition will drive growth and create new opportunities for both UAC and CHI Limited. The deal is expected to provide new synergies, leveraging UAC’s operational scale and CHI Limited’s strong distribution and brand equity.
The sale aligns with Coca-Cola’s global strategy to operate a flexible, asset-light model, focusing on high-potential brands. Despite the divestment, Coca-Cola remains committed to Nigeria, with a planned investment of $1 billion over five years, contingent on a stable and enabling business environment. Eelco Weber, Managing Director of CHI Limited, expressed optimism about the partnership, citing exciting opportunities for further growth.
The acquisition cements UAC’s position as a key player in Nigeria’s consumer goods space, with CHI Limited’s strong brand equity and distribution network expected to drive growth and innovation. The deal is seen as a significant development in Nigeria’s FMCG sector, with potential implications for market dynamics and competition. UAC’s entry into the dairy and juice market is expected to intensify competition and drive innovation, ultimately benefiting consumers.
