By Muhammad Sal
UAC of Nigeria Plc has received final regulatory approval to complete its acquisition of Chi Limited, a leading producer of popular beverages such as Chivita and Hollandia. This move marks a shakeup in Nigeria’s fast-moving consumer goods (FMCG) sector.
The deal, announced on July 30 and concluded in early October following the green light from the Federal Competition and Consumer Protection Commission (FCCPC). It also signals a new era for both brands and the wider food and beverage landscape in Nigeria.
UAC, one of Nigeria’s oldest conglomerates, had previously revealed its intent to purchase Chi Limited from The Coca-Cola Company in a bid to bolster its position in the high-growth non-carbonated drinks segment.
The transaction has been fully financed, with UAC leveraging a mix of internal resources and new bank facilities—a strategic move described as years in the making by Fola Aiyesimoju, Group Managing Director and CEO of UAC. “This was not an opportunistic deal. We had planned for this, years in advance, ensuring our foundation – people, IT systems, risk controls – was strong enough to manage a larger business. The acquisition fits perfectly into our long-term strategy,” Aiyesimoju explained.
Chi Limited, incorporated in 1980, is best known for its innovative approach to locally produced beverages and dairy products, striving to meet Nigeria’s evolving consumer preferences.
The company was acquired in full by Coca-Cola in 2019 after an initial minority investment dating back to 2016. However, in a move to streamline its operations and shift to a more flexible, asset-light model, Coca-Cola has agreed to divest from Chi Limited while maintaining plans to invest $1 billion in Nigeria over the next five years.
Welcoming the transition, Eelco Weber, Managing Director of Chi Limited, stated: “We are pleased to have received regulatory approval for this transaction. We look forward to a smooth transition and to seeing Chivita|Hollandia thrive under UAC’s ownership”.
Aiyesimoju added: “We are excited to officially welcome the Chi Limited team and brands into the UAC family and eager to build on their strong legacy and market leadership”.
Industry observers note that this acquisition strengthens UAC’s portfolio and competitive position, setting the stage for intensified innovation and growth in Nigeria’s beverage market.
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