UAC of Nigeria Plc (UACN) has announced that it has deposited ₦19.2 billion in escrow as part of its ongoing acquisition of CHI Limited, the producer of popular consumer brands such as Chivita, Hollandia, and Capri-Sonne, from The Coca-Cola Company. The landmark transaction, which has now received clearance from the Federal Competition and Consumer Protection Commission (FCCPC), represents one of the most significant deals in Nigeria’s fast-moving consumer goods (FMCG) industry in recent years.
According to UACN’s Q3 2025 financial report, the ₦19.2 billion deposit remains in escrow as of September 30, 2025, pending the completion of final regulatory and contractual requirements. This acquisition underscores UACN’s ambition to reclaim its historical dominance in Nigeria’s consumer goods market by expanding into the beverage and dairy segments, two of the most lucrative and competitive categories in the FMCG sector.
A Transformational Acquisition Years in the Making
Speaking on the acquisition, UACN’s Group Managing Director and Chief Executive Officer, Fola Aiyesimoju, described the deal as the culmination of a long-term strategic vision.
“This was not an opportunistic deal. We had planned for this years in advance, ensuring our foundation—people, IT systems, and risk controls—were strong enough to manage a larger, more complex business,” he said.
Aiyesimoju emphasized that integrating CHI Limited into UAC’s structure will create synergies across production, distribution, and branding, while allowing the company to scale operations efficiently. UACN already owns several iconic brands, including Gala, Supreme Ice Cream, and Swan Water, and the addition of CHI’s beverage and dairy lines will significantly expand its product portfolio and consumer reach.
Acquisition Fully Financed and Strategically Structured
The transaction is fully funded, with UACN leveraging a blend of internal reserves and external financing. According to Group Chief Financial Officer Funke Ijaiya-Oladipo, UACN adopted a disciplined financing model to balance liquidity and leverage.
“Yes, we’ve taken on more leverage, but we’ve also improved liquidity and are operating with higher efficiency,” she stated during a half-year investor briefing.
Funding sources for the acquisition include the sale of Eurobond investments worth ₦5.4 billion, alongside ₦43 billion in loans secured from a consortium of lenders such as First Bank, Zenith Bank, the Bank of Industry (BOI), FSDH, and a related-party facility from Famous Brands.
In addition, ₦16.1 billion was raised through commercial papers at a steep 25% interest rate, maturing in November 2025. The company also holds other short-term credit facilities with interest rates ranging from 21.5% to 32%, in addition to a corporate bond yielding 21.5%. Despite the high cost of borrowing, UACN’s management maintains that the acquisition will deliver strong long-term returns through enhanced brand strength, production capacity, and operational integration.
Coca-Cola’s Exit and Strategic Write-Down
For The Coca-Cola Company, the sale marks the end of its nearly decade-long ownership of CHI Limited. Coca-Cola had initially acquired a 40% stake in CHI in 2016 before taking full ownership in 2019. In its most recent filings, Coca-Cola disclosed a $393 million charge tied to its Nigerian operations held for sale, with its total investment and subsequent write-down estimated at $500 million (approximately ₦180 billion at an exchange rate of ₦360/$1 at the time).
At the current exchange rate of ₦1,500/$1, the transaction’s implied historical cost equates to roughly ₦750 billion, signaling a substantial shift in asset valuation amid Nigeria’s evolving economic environment.
Market Reaction and Strategic Outlook
The market has reacted dynamically to the acquisition news. Following the initial announcement on July 30, 2025, UACN’s share price surged from ₦73 to ₦83.60 within ten days, representing a 166% year-to-date gain. However, by the end of October, the stock had moderated to ₦66 per share, reflecting short-term investor profit-taking and broader market corrections.
Industry analysts view the acquisition as a bold and strategic move that positions UACN as a dominant player in Nigeria’s FMCG landscape. With CHI Limited’s stronghold in fruit juices and dairy drinks, combined with UACN’s extensive distribution and manufacturing infrastructure, the combined entity is expected to command a larger share of consumer spending in Nigeria’s food and beverage industry.
Looking Ahead
Once the acquisition is finalized, UACN will assume full operational control of CHI Limited, integrating its production facilities, workforce, and distribution networks. This consolidation is anticipated to enhance efficiency, lower production costs, and drive innovation across product categories.
Analysts forecast that the expanded UACN group will generate significant revenue growth in 2026, supported by Nigeria’s youthful demographics and rising demand for packaged food and drinks. The acquisition also strengthens UACN’s export potential, allowing the company to leverage CHI’s existing West African market presence.
In the words of CEO Aiyesimoju, “This deal represents more than just growth—it’s about redefining how UACN competes, innovates, and delivers value to consumers.”
With the final regulatory steps nearing completion, UACN’s ₦19.2 billion deposit signals more than financial commitment—it represents a strategic bet on Nigeria’s consumer market and the future of African enterprise.
