Coca Cola Finalises Acquisition of Nigeria’s CHI Limited
Coca Cola Company, a carbonated soft drink manufacturer in a notice posted on its website announced that it has completed its acquisition of a fast-moving consumer goods company, CHI Limited.
Tropical General Investments Group (TGI Group), the holding company of CHI Limited and the Coca Cola Company announced a binding agreement which saw Coca-Cola acquire an initial minority equity shareholding in CHI Limited in 2016.
It was noted that there were plans to increase ownership to 100 percent within three years, subject to regulatory approvals. The President of the West African unit of Coca Cola, Peter Njojo last year, stated that the acquisition will be completed in the first quarter of 2019.
According to a statement by Njojo, there are plans to expand sales of the CHI brand across Africa. He said “Coca Cola is continuing to evolve as a total beverage company, and CHI’s diverse range of beverages perfectly complements our existing portfolio, enabling us to accelerate expansion into new categories and grow our business in Africa.
We will support the CHI management team in building on the company’s remarkable heritage and achievements, while using the scale of the Coca Cola system to replicate their success in more markets across Africa.”
The Coca-Cola Company headquartered in Atlanta, Georgia, is an American multinational beverage corporation, manufacturer, retailer, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca Cola invented in 1886 by pharmacist John Pemberton.
CHI Limited was founded in Lagos, Nigeria, in 1980, produces juice under the Chivita brand and value-added dairy under the Hollandia brand, among many other products. Coca-Cola acquired a 40 percent stake in Chi in 2016 from Tropical General Investments Group, the holding company for Chi Ltd. Juices and value-added dairy categories rank among the fastest-growing beverage segments in Nigeria and Africa.