In one of the most talked-about business moves of 2025, UAC of Nigeria Plc officially completed the acquisition of CHI Limited, the popular beverage and dairy company behind Chivita, Hollandia, and Capri-Sun, from The Coca-Cola Company. The historic transaction, finalized after receiving approval from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) on October 3, 2025, marked a major shift in the country’s Fast-moving Consumer Goods (FMCG) sector.
This acquisition was more than just a corporate handover, it was a strategic repositioning for both companies. For UAC, it signaled a bold return to dominance in the food and beverage industry, while for Coca-Cola, it was part of a global strategy to streamline operations and focus on core, high-growth segments in its expansive portfolio. The deal, which had been in the works since early July 2025, represented months of careful negotiation, due diligence, and valuation exercises that underscored the importance of CHI Limited in Nigeria’s beverage and dairy landscape.
Discussions between Coca-Cola and UAC began quietly in the first quarter of 2025, following Coca-Cola’s internal restructuring to reduce direct ownership in regional subsidiaries. By July 30, 2025, both companies publicly announced an agreement for UAC to purchase the full equity stake in CHI Limited, pending regulatory approvals. After due diligence and valuation exercises, the acquisition was finalized in October, transferring ownership of CHI’s brands, assets, and manufacturing plants to UAC of Nigeria Plc.
The transition process was seamless, as both companies already shared operational synergy within Nigeria’s food and beverage ecosystem. Coca-Cola had previously acquired CHI Limited in 2019, gradually increasing its ownership to 100% in line with its expansion into fruit juices and dairy-based drinks. However, changing market dynamics, coupled with evolving global strategies, made the divestment timely, allowing Coca-Cola to pivot strategically while giving UAC a foothold into some of Nigeria’s most beloved brands.
Coca-Cola’s decision to sell CHI Limited was rooted in its asset-light business model, a global strategy that prioritizes high-margin, scalable products while offloading locally intensive operations. Despite CHI Limited generating an estimated N150 billion ($100 million) in annual revenue for Coca-Cola’s Nigerian operations, its returns were modest compared to Coke’s flagship sparkling drinks. The juice and dairy categories, though growing in Nigeria, required high production costs, significant local sourcing, and complex supply chains, areas that didn’t align with Coca-Cola’s streamlined global focus.
By divesting CHI Limited, Coca-Cola aimed to reallocate resources to its core beverage lines like Coca-Cola, Fanta, Sprite, and Monster Energy, while maintaining a lighter operational footprint in regional markets. The move also allowed Coca-Cola to focus on brand ownership and franchise partnerships rather than direct production, a model that has proven highly profitable in other regions of Africa and globally. This shift demonstrates the company’s commitment to global efficiency while ensuring that high-performing regional brands continue to thrive under capable local management.
For UAC, the acquisition of CHI Limited was a strategic goldmine that perfectly complemented its diverse portfolio, which already includes food, quick-service restaurants, paints, and animal feeds. The deal immediately gave UAC access to over 40% of Nigeria’s packaged juice market and 35% of the yoghurt segment, solidifying its position as a leading player in non-alcoholic beverages. With CHI’s strong distribution network, which reaches over 100,000 retail points across Nigeria, UAC expects to increase its annual revenue by more than N200 billion over the next five years.
Senior executives at UAC highlighted that CHI Limited represents a natural synergy with existing operations, enhancing the company’s ability to deliver quality products to Nigerian households while driving long-term profitability. Analysts also note that UAC can leverage its existing logistics, marketing, and retail infrastructure to expand CHI’s production capacity by 25% within two years, ensuring the company maximizes the potential of these newly acquired brands.
The acquisition benefits both companies in tangible ways. For UAC, it opens doors to a diversified revenue stream, reducing reliance on its traditional food and restaurant businesses while enhancing competitiveness in Nigeria’s growing beverage market. Meanwhile, Coca-Cola benefits indirectly through continued supply partnerships and product licensing agreements. The divestment frees up an estimated $200 million in operating costs globally, which Coca-Cola can reinvest in digital transformation, marketing, and sustainability initiatives. Industry analysts suggest that the deal could raise UAC’s market capitalization by as much as N500 billion in the medium term, positioning it as one of the largest food and beverage conglomerates in West Africa. The move also ensures that the beloved CHI brands continue to grow under local ownership while remaining accessible to consumers nationwide.
Both companies were driven by evolving market realities. Coca-Cola’s global restructuring necessitated pulling out of capital-heavy operations to focus on brands with high scalability and profitability. UAC, on the other hand, recognized Nigeria’s growing middle class, rising demand for ready-to-drink beverages, and CHI’s established brand recognition as an opportunity too significant to ignore. Nigeria’s beverage market, valued at over N3 trillion ($2 billion), continues to grow annually by 7–10%, driven by urbanization and youthful demographics. With brands like Chivita Active, Hollandia Yoghurt, and Capri-Sun now under its control, UAC has positioned itself to capture a substantial share of this growth, solidifying its status as a powerhouse in the nation’s FMCG sector.
Reactions from stakeholders have been largely positive. Employees at CHI Limited expressed cautious optimism about the change in ownership, highlighting that UAC’s local focus could bring better career development opportunities and more stable operations. A production supervisor at CHI noted, “We are hopeful that under UAC, there will be more investment in our factories and equipment, and that the company will prioritize retaining skilled staff while creating more jobs.” Distributors and retailers also welcomed the move, emphasizing that UAC’s established distribution network could strengthen supply chains and ensure wider availability of CHI products nationwide. “We expect smoother deliveries and more promotional support from UAC,” said a Lagos-based distributor. Workers at Coca-Cola, while affected by the divestment, understood that the asset-light strategy allowed the company to focus resources on high-growth brands and markets, potentially benefiting employees in other segments. Overall, industry watchers believe that the integration of CHI into UAC will likely create more employment opportunities and improve operational efficiency in the long term.
As UAC integrates CHI Limited into its operations, the move is expected to transform the company’s earnings profile, strengthen its dominance in Nigeria’s FMCG space, and create a more diversified and resilient business model. Coca-Cola, meanwhile, retains a strong foothold in the sparkling drinks market while becoming leaner, more focused, and better positioned to scale globally. This acquisition underscores a broader trend among multinational corporations in Africa, emphasizing local empowerment and strategic localization. Coca-Cola shifts its gaze to global efficiency, while UAC steps forward as a proud Nigerian conglomerate ready to expand local production, create jobs, and champion brands millions of Nigerians already love. In the end, it is a win-win: Coca-Cola can concentrate on its global operations, UAC can grow locally, and Nigerian consumers continue to enjoy the familiar taste of Chivita and Hollandia, now strengthened under the stewardship of one of Nigeria’s oldest and most trusted companies.
–Benprince Ezeh
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