Daniel Otera
UAC of Nigeria Plc is poised to make a strong comeback to the beverages sector with a landmark agreement to acquire CHI Limited, the producer of popular juice and dairy brands Chivita and Hollandia, from The Coca-Cola Company.
Details of the transaction, filed with the Nigerian Exchange, reveal that the deal is still subject to regulatory approvals. Once completed, UAC will take full control of CHI Limited, a major player in Nigeria’s fast-moving consumer goods industry.
Fola Aiyesimoju, Group Managing Director of UAC, described the move as a strategic opportunity to deepen the company’s footprint in the consumer market.
“This acquisition presents significant potential to build on Chivita and Hollandia’s legacy of excellence and innovation,” Aiyesimoju said. “It’s a key step in our broader commitment to the continent’s growth and long-term value creation.”
Founded in 1980, CHI Limited has grown into one of Nigeria’s most recognisable names in the beverage sector. The company manufactures a wide range of products, including fruit juices, flavoured milk, yoghurt, and snacks. With a workforce of over 5,000 people across its production sites and distribution network, CHI has built a strong national presence and brand loyalty among Nigerian consumers.
Sources confirm CHI’s position as a major player in Nigeria’s fast-moving consumer goods industry, known for brands like Chivita and Hollandia.
Its Managing Director, Eelco Weber, expressed confidence about the brand’s future under its new ownership.
“We see a bright future for Chivita and Hollandia,” said Weber. “With the strength of our team and the backing of UAC, we are well positioned for further growth.”
He also commended the workforce for helping to build the company’s brand reputation. “I want to thank our more than 5,000 employees whose hard work and commitment have earned CHI Limited a Gold rating as a Great Place to Work.”
For Coca-Cola, the deal aligns with its strategy to refocus on its core beverage brands and adopt a lighter, brand-driven operating model.
“This move supports our strategy to concentrate on brands with the greatest potential to scale,” a Coca-Cola spokesperson said. “We remain committed to Nigeria and will continue investing in its long-term potential.”
Despite mounting investor anxiety over Nigeria’s economic environment driven by naira instability, rising inflation, and policy uncertainty Coca-Cola has pledged to inject $1 billion into its Nigerian operations over the next five years. However, company executives have stressed that the investment hinges on a stable policy and economic framework.
“With a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years,” Coca-Cola HBC CEO Zoran Bogdanovic said during a meeting with President Bola Tinubu earlier this year, according to Reuters.
Legal and financial advisers on the transaction include Templars and Fasken Martineau LLP for UAC, while Citi and McDermott Will & Emery represented Coca-Cola.
If finalised, the deal would mark one of the biggest shake-ups in Nigeria’s beverage industry in over a decade. It signals UAC’s bold return to a market it once dominated but gradually stepped away from. The company had scaled down its presence in the sector after divesting from some key brands, but the acquisition of Chivita and Hollandia positions it to become a major player once again.
According to a Bloomberg report, the transaction follows Coca-Cola’s global shift toward an asset-light model and comes nearly six years after it completed full ownership of CHI Limited in 2019. UAC’s move is being described by analysts as a strategic re-entry into Nigeria’s fast-moving consumer goods market, which is projected to grow steadily despite recent inflationary pressures.
A statement by UAC filed with the Nigerian Exchange Group and cited by Nairametrics noted that the acquisition aligns with its long-term growth agenda and could transform the company into one of West Africa’s largest food and beverage firms.