Coca-Cola Company has signed an agreement to acquire an initial minority equity shareholding in Nigeria’s Chi Ltd
With this agreement, a strategic relationship has been formed between the two entities to cater to Nigeria’s beverage industry. Coca-Cola Company has made an initial 40 per cent equity investment in Chi Ltd and intends to increase ownership to 100 per cent within three years, subject to regulatory approvals, while working on other long-term commercial structures. Additionally, the parties have agreed to jointly discuss and explore other opportunities in the region to further develop the relationship, said Coca-Cola.
The latest investment by Coca-Cola expands its presence in Nigeria’s value-added dairy and beverage sector. The agreement is expected to allow both companies to leverage their respective investments and expertise to further drive innovation, optimise efficiency and strengthen route-to-market to accelerate growth and increase consumer availability and choice.
Coca-Cola Eurasia and Africa president Nathan Kalumbu said, “For more than 30 years, Chi’s leadership has built a greatly admired business that has quickly grown to become Nigeria’s leading producer and distributor of value-added dairy and juice products and we are delighted to enter the next phase of our growth journey together.”
The newly-formed business alliance will further help Chi Ltd consolidate its regional footprint and product portfolio, added TGI Group and Chi Ltd chairman Cornelis Vink.
In 2014, Coca-Cola announced an increased investment in Africa to a total of US$17bn from 2010 to 2020. This investment, which is roughly three times the amount invested in the last decade, is funding new manufacturing lines, distribution capabilities and cold drink equipment while creating additional jobs and opportunities on the continent.
