In a landmark move signaling strategic shifts within Nigeria’s consumer goods sector, UAC of Nigeria PLC has reached an agreement to acquire full ownership of Chivita|Hollandia (operating as CHI Limited) from The Coca-Cola Company. This acquisition marks a pivotal transition in the Nigerian food and beverage market, positioning UAC to further strengthen its portfolio and deepen its market penetration.

The deal, which remains subject to regulatory approval, aligns with Coca-Cola’s global strategy to streamline operations by focusing on scalable brands while adopting a flexible, asset-light business model. In contrast, UAC is pursuing aggressive expansion within the consumer goods space, reaffirming its confidence in Nigeria’s long-term economic potential.

CHI Limited’s Market Legacy and Brand Strength

CHI Limited has long held a dominant position in Nigeria’s beverage and dairy segments. With two flagship brands—Hollandia and Chivita—the company boasts significant market leadership. Hollandia leads in the evaporated milk and drinking yoghurt categories, while Chivita remains the top player in fruit juices and nectars.

Founded with a vision to provide affordable, high-quality food and beverage products, CHI Limited has evolved into one of Nigeria’s most respected FMCG (Fast-Moving Consumer Goods) companies. Over the years, it has grown an extensive distribution network, strong consumer loyalty, and a workforce of over 5,000 employees. Its operational excellence and consistent innovation have earned it numerous accolades, including Gold-rated “Great Place to Work” recognition.

Why Coca-Cola Is Selling

The Coca-Cola Company, which acquired full ownership of CHI Limited in January 2019 after an initial minority stake, has now opted to divest from the unit. The decision reflects Coca-Cola’s broader restructuring strategy, focused on optimizing its core beverage portfolio. By stepping away from direct manufacturing and supply chain-heavy segments, Coca-Cola aims to concentrate on high-growth beverage categories that fit its scalable business model.

Importantly, Coca-Cola recently announced a $1 billion investment plan for Nigeria over the next five years. However, the company clarified that such investments depend on the existence of a stable and supportive business environment. Despite exiting CHI Limited, Coca-Cola remains actively engaged in the Nigerian market and continues to view Africa as a critical frontier for long-term growth.

UAC’s Strategic Vision and Investment Outlook

UAC of Nigeria, a long-established conglomerate with a diverse portfolio spanning food products, paints, logistics, and real estate, has increasingly focused on consolidating its consumer goods division. The acquisition of CHI Limited aligns perfectly with this goal, enhancing UAC’s product range in the high-demand dairy and fruit beverage segments.

Group Managing Director Fola Aiyesimoju expressed optimism about the acquisition’s potential. According to him, the company remains fully committed to driving Africa’s development through strategic investments and innovation.

“This transaction offers tremendous opportunity to build upon CHI Limited’s proven track record of quality and innovation,” Aiyesimoju said. “We deeply appreciate the contributions of CHI’s management and workforce and look forward to a fruitful collaboration as we enter this exciting new phase.”

UAC’s current operational scale includes nine manufacturing plants and a vast logistics footprint across Nigeria. With this acquisition, UAC stands to significantly expand its reach, product offerings, and consumer influence.

Leadership Comments from CHI Limited

Eelco Weber, the Managing Director of CHI Limited, also shared his views on the company’s journey and its outlook under new ownership. He praised the team’s resilience and dedication, highlighting how the Chivita and Hollandia brands have grown to dominate their respective markets.

“We are proud of what we’ve achieved,” Weber said. “Our talented team of over 5,000 individuals has shown extraordinary commitment in elevating our brands and strengthening our company. Being recognized as a Gold-rated Great Place to Work is a reflection of our values and people-first culture.”

Looking ahead, Weber stated that he and the leadership team are optimistic about what the future holds. With UAC’s backing and a renewed growth strategy, CHI Limited is positioned for even greater expansion.

“There’s a bright road ahead for Chivita|Hollandia,” he added. “The combination of our talented workforce and UAC’s deep experience in consumer markets presents an exciting opportunity to unlock new growth.”

Advisors and Deal Facilitators

Citi acted as the exclusive financial advisor to Coca-Cola throughout the transaction. The legal advisory was handled by McDermott Will & Emery. On the side of UAC, legal guidance came from both Fasken Martineau LLP and Templars Law.

These advisory roles were critical in structuring a deal that reflects the interests of both companies and ensures compliance with Nigerian regulatory standards. The regulatory approval process is already underway, and both parties expect a smooth conclusion of the transaction.

Industry and Economic Impact

This acquisition comes at a time when Nigeria’s food and beverage sector continues to show resilience despite broader macroeconomic challenges. With inflation, forex fluctuations, and import bottlenecks affecting product costs and consumer behavior, local manufacturing capabilities have become increasingly vital. UAC’s takeover of CHI Limited underscores the value of domestic production and logistics in navigating a complex market environment.

Moreover, the deal reflects a rising trend of African multinationals regaining ownership of key consumer assets previously acquired by global conglomerates. UAC’s local knowledge and expansive network offer a unique advantage in leveraging CHI Limited’s infrastructure and brand equity.

From a workforce perspective, the acquisition brings renewed optimism. Both companies have reaffirmed their commitment to retaining CHI Limited’s existing workforce and continuing investments in employee development.

What Comes Next

Once the regulatory process concludes, UAC is expected to begin full integration of CHI Limited into its business operations. Analysts anticipate significant investment in product innovation, marketing, and geographic expansion.

Additionally, market watchers believe this acquisition may serve as a catalyst for further M&A (mergers and acquisitions) activity within Nigeria’s consumer goods space, as local firms seek to fortify their market presence amid rising competition and changing consumer trends.

Given the size, reach, and brand strength of Chivita and Hollandia, this deal has the potential to reshape Nigeria’s FMCG landscape.

Final Thoughts

UAC’s acquisition of CHI Limited from Coca-Cola represents more than just a corporate transaction. It signals confidence in Nigeria’s consumer market, a belief in local manufacturing, and a commitment to long-term value creation.

While Coca-Cola sharpens its focus on scalable global brands, UAC is doubling down on its local roots—betting that Nigerian consumers will continue to demand trusted, high-quality dairy and juice products. With the right execution, this strategic shift could unlock new levels of growth and influence for both UAC and CHI Limited in the years to come.