UAC of Nigeria has finalized the acquisition of CHI Limited, the parent company of the popular Chivita and Hollandia brands, marking a significant milestone in the company’s growth strategy. The transaction, which follows approval by the Federal Competition and Consumer Protection Commission (FCCPC), firmly positions UAC as a leading player in Nigeria’s fast-growing food and beverage sector.
Regulatory Approval Clears the Way
The acquisition was first announced on July 30 and has now officially been completed, transferring full ownership of CHI Limited to UAC. The FCCPC’s approval represents the final step in the transaction, paving the way for the integration of the two companies’ operations. Both parties have expressed confidence in a seamless transition and a shared vision for future expansion.
Eelco Weber, Managing Director of Chivita|Hollandia, confirmed the regulatory approval and highlighted the company’s commitment to maintaining its leadership position.
“We are pleased to have received regulatory approval for this transaction. We look forward to seeing Chivita|Hollandia thrive under UAC’s ownership,” Weber said.
Expanding UAC’s FMCG Footprint
Founded more than a century ago, UAC of Nigeria is a diversified holding company with business interests spanning manufacturing, marketing, and distribution of household consumer products. The group operates nine manufacturing facilities and multiple logistics and distribution hubs across the country, employing around 5,000 people.
Fola Aiyesimoju, Group Managing Director of UAC, described the acquisition as a strategic move that reinforces the company’s ambitions in the fast-moving consumer goods (FMCG) industry.
“We are excited to officially welcome the Chivita|Hollandia team and brands into the UAC family, and we look forward to building on their strong market leadership,” Aiyesimoju said.
Chivita and Hollandia: Market Leaders in Beverages
Chivita|Hollandia is widely recognized as one of Nigeria’s most prominent food and beverage companies, producing popular juice and dairy brands that have become staples in Nigerian households. The acquisition gives UAC access to CHI Limited’s extensive production and distribution networks, as well as its strong brand equity.
Industry analysts note that this deal aligns with UAC’s strategy to deepen its presence in high-demand consumer segments, positioning the company to compete more aggressively against both local and international players.
Strategic Implications for the Coca-Cola System
The transaction also underscores the growing significance of Africa as a long-term growth market within the The Coca-Cola Company ecosystem. By integrating Chivita|Hollandia into its portfolio, UAC aims to capitalize on CHI Limited’s legacy of quality, innovation, and strong consumer loyalty in Nigeria’s beverage landscape.
Financial Performance and Outlook
In its half-year financial results to June, UAC reported a 32.6 percent increase in revenue to ₦110.4 billion, compared to the same period the previous year. However, the company also posted a 22.9 percent decline in net profit, falling from ₦9.5 billion (US $6.45 million) to ₦7.4 billion (US $5.03 million). Return on equity also slipped from 14.4 percent at the end of last year to 10.1 percent.
Despite this short-term dip in profitability, market observers say the acquisition is expected to strengthen UAC’s revenue base, diversify its earnings streams, and improve its long-term competitive positioning.
A New Chapter for Nigeria’s Beverage Industry
With this acquisition, UAC of Nigeria is poised to become an even more dominant force in the food and beverage market, building on the trusted reputation of Chivita and Hollandia. The integration of the two companies signals renewed investment, innovation, and job creation in a sector that plays a critical role in Nigeria’s economy.
As UAC embarks on this new chapter, the market will be watching closely to see how the company leverages its expanded brand portfolio to drive growth and shareholder value in the years ahead.
