UAC Gets Regulatory Nod From FCCPC to Acquire CHI Limited, Makers of Chivita, Hollandia

• UAC of Nigeria Plc has received regulatory approval from the FCCPC to proceed with its acquisition of CHI Limited
• The deal, which is now in its final stages pending discussions with Coca-Cola, will expand UAC’s packaged foods and beverages portfolio
• This acquisition aligns with UAC’s growth strategy and Coca-Cola’s focus on streamlining its operations to focus on high-scale brands

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

UAC of Nigeria Plc has secured approval from the Federal Competition and Consumer Protection Commission (FCCPC) to proceed with its planned acquisition of CHI Limited, the producer of Chivita fruit juices and Hollandia Yoghurt.

This regulatory approval moves the deal closer to completion, with UAC now set to finalise discussions with Coca-Cola on the buyout.

UAC first announced the planned acquisition in late July, calling it a “strategic milestone” for its business expansion.

The move will strengthen UAC’s packaged foods and beverages division, which currently includes popular brands like Gala and Supreme Ice Cream.

Group Managing Director of UAC, Fola Aiyesimoju, said:

“We are excited to officially welcome the Chivita|Hollandia (CHI Limited) team and brands into the UAC family, and we are eager to work together to build on their strong legacy and market leadership.”

UAC received legal guidance from Fasken Martineau and Templars, while Citi advised Coca-Cola financially. McDermott Will & Emery, based in Chicago, acted as Coca-Cola’s legal advisor.

In its financial report for the first half of the year, UAC recorded a 32.6% increase in revenue to N110.4 billion.

However, net profit declined by 22.9%, falling from N9.5 billion to N7.4 billion. Return on equity also dropped to 10.1%, compared to 14.4% at the end of the previous year.

Eeelco Weber, CEO of CHI Limited, expressed confidence in the transition, stating that the company looks forward to thriving under UAC’s ownership.

Weber, said:

“We are pleased to have received regulatory approval for this transaction. We look forward to a smooth transition and to seeing Chivita|Hollandia (CHI Limited) thrive under UAC’s ownership.”

For Coca-Cola, this deal aligns with its global shift toward a leaner, asset-light business model that prioritises its most profitable and large-scale brands.

The acquisition also aligns with Coca-Cola’s strategy to streamline its operations by focusing on its core strengths and competitive brands.

The company has also restated its long-term commitment to the Nigerian market, announcing plans to invest $1 billion over the next five years, provided the business climate remains stable and conducive.

Coca-Cola announces new bottle size

Legit.ng reported that Coca-Cola Nigeria has unveiled a new 60cl PET bottle across its beverage portfolio, promising Nigerian consumers more volume and refreshment at no extra cost.

The launch, which took place this week, introduces a larger bottle size for Coca-Cola, Fanta, and Sprite.

The company said the move is aimed at delivering greater value and enriching everyday moments for consumers.

Source: Legit.ng