The Coca-Cola Company has announced a major divestment in Nigeria, entering into a definitive agreement to sell its wholly owned subsidiary, Chivita|Hollandia (CHI Limited), to UAC of Nigeria PLC.
The transaction marks a significant restructuring in Coca-Cola’s Africa strategy as the company intensifies its shift toward an asset-light business model while maintaining a firm presence in one of its key growth markets.
CHI Limited, the maker of Chivita and Hollandia, has established itself as a dominant force in Nigeria’s food and beverage sector. The Chivita line leads in the fruit juice segment, while Hollandia dominates the evaporated milk and drinking yoghurt market. The company also produces a range of snacks and still drinks, with a workforce of over 5,000 employees and a strong nationwide distribution network.
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The sale, which is pending regulatory approval, aligns with Coca-Cola’s global strategy to focus on brands with the greatest potential to scale and to reduce ownership of capital-intensive operations. In its statement, the U.S. beverage giant reaffirmed its long-term commitment to Nigeria, referencing a planned $1 billion investment over the next five years, contingent on the existence of a stable and enabling environment.
“This transaction further supports The Coca-Cola Company’s strategy to operate a flexible and asset-light model and focus on brands that have the greatest potential to scale,” the company said.
UAC of Nigeria, a prominent holding company with interests across consumer goods, paints, logistics, and real estate, will absorb CHI Limited into its portfolio. With nine manufacturing facilities and multiple logistics hubs across Nigeria, UAC sees the acquisition as a chance to broaden its reach in the food and beverage space.
Fola Aiyesimoju, Group Managing Director of UAC, called the acquisition a strategic win, stating: “As a company with a strong presence in Africa, we are deeply committed to the continent’s growth. We are pleased to announce the acquisition of Chivita|Hollandia (CHI Limited), a leading dairy and juice business in the region. This acquisition presents significant potential to build on Chivita|Hollandia’s (CHI Limited’s) legacy of excellence and innovation.”
This acquisition presents significant potential to build on CHI Limited’s legacy of excellence and innovation.”
CHI Limited’s managing director, Eelco Weber, also expressed optimism about the deal, noting the company’s recent achievements and the strong position of its brands in the market. He praised the team of over 5,000 employees, calling the company a “Gold-rated Great Place to Work,” and added: “We see a bright future for Chivita|Hollandia (CHI Limited). With the strength of our team, coupled with the dedication of UAC, there will be exciting opportunities for further growth.”
Coca-Cola acquired full ownership of CHI Limited in 2019 after gradually increasing its stake, positioning itself to gain greater control over the value-added dairy and juice segments in Nigeria. However, with increasing cost pressures, currency volatility, and broader macroeconomic headwinds affecting multinationals operating in the region, Coca-Cola appears to be recalibrating its approach.
This move mirrors similar retrenchments by other multinational giants such as Unilever and PZ Cussons, who have either divested or reduced exposure to certain operations in Nigeria amid declining margins and operational inefficiencies.
The financial details of the CHI Limited transaction were not disclosed. However, Citi served as the exclusive financial advisor to The Coca-Cola Company, while McDermott Will & Emery acted as legal counsel. UAC was advised by Fasken Martineau LLP and Nigerian law firm Templars.
The deal adds to UAC’s growing footprint in the Nigerian consumer market, potentially positioning the company to capitalize on rising demand for branded dairy and juice products as consumer habits evolve. For Coca-Cola, it marks another step toward a leaner operating model while continuing to support its presence in Africa through strategic investments and partnerships.