Regulatory Approval Completes UAC’s Acquisition of CHI Limited
The acquisition of CHI Limited, the producer of Nigeria’s market-leading Chivita and Hollandia brands, by UAC of Nigeria PLC is now complete, following official approval from the Federal Competition and Consumer Protection Commission (FCCPC).
This transaction, first announced on July 30, 2025, marks a significant milestone in Nigeria’s fast-moving consumer goods (FMCG) sector. CHI Limited, previously owned by The Coca-Cola Company, is a powerhouse in the Nigerian food and beverage industry, with its flagship brands holding dominant positions in the fruit juice (Chivita) and value-added dairy (Hollandia evaporated milk and drinking yogurt) categories.
Strategic Significance of the Deal
The sale aligns with key strategic goals for both companies and is expected to significantly reshape the competitive landscape:
For UAC of Nigeria PLC: The acquisition is a strategic boost to UAC’s growth agenda, allowing the major Nigerian conglomerate to strengthen its presence across several key FMCG segments, including dairy, beverages, and snacks. UAC will integrate these new brands with its existing portfolio, which includes household names like Gala and Supreme Ice Cream. This synergy will enable UAC to leverage CHI’s established brands and a workforce of over 5,000 employees, alongside UAC’s extensive manufacturing and distribution network, to drive new growth and operational efficiencies.
For The Coca-Cola Company, the divestment aligns with the company’s global strategy to operate a more flexible and asset-light model, allowing it to focus on its core, high-growth brands. Despite the sale, Coca-Cola reiterated its long-term commitment to the Nigerian market, including a previously announced $1 billion investment plan over five years, contingent on a stable business environment.
For the Nigerian Market:
The acquisition underscores a growing trend of local conglomerates reclaiming ownership of major consumer brands previously held by multinational corporations. Analysts suggest this shift positions Nigerian-owned companies at the center of a new phase of competition and innovation, with local market knowledge potentially leading to better distribution and more affordable product offerings for consumers.
Leadership Statements
Both company leaders expressed enthusiasm regarding the finalization of the deal:
Fola Aiyesimoju, Group Managing Director of UAC, stated that the company is “excited to officially welcome the Chivita|Hollandia team and brands into the UAC family, and we are eager to work together to build on their strong legacy and market leadership.”
Eelco Weber, Managing Director of CHI Limited, also voiced optimism for the future, saying, “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.”
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