UAC of Nigeria Plc (UACN) has confirmed the deposit of ₦19.2 billion in escrow toward the acquisition of CHI Limited, makers of the popular Chivita and Hollandia brands, from The Coca-Cola Company.
The landmark transaction, which has received approval from the Federal Competition and Consumer Protection Commission (FCCPC), marks a major step in UACN’s strategic expansion within Nigeria’s fast-moving consumer goods (FMCG) sector.
“This deal has been years in the making,” said Group CEO Fola Aiyesimoju. “It reflects our disciplined, long-term vision to build a stronger, more diversified consumer brand portfolio.”
According to UACN’s Q3 2025 financials, the ₦19.2 billion deposit remains in escrow pending final regulatory clearances. The company also incurred ₦2.2 billion in acquisition-related costs.
Funke Ijaiya-Oladipo, Group CFO, noted that the acquisition was financed through a blend of internal funds and borrowings. UACN raised approximately ₦5.4 billion from Eurobond sales and secured ₦43 billion in loans from a consortium including First Bank, Zenith Bank, Bank of Industry (BOI), FSDH, and Famous Brands (a related party).
Additionally, ₦16.1 billion was raised via commercial papers at a 25 per cent interest rate, due in November 2025. The company also maintains short-term loans with rates between 21.5 per cent and 32 per cent, alongside a corporate bond yielding 21.5 per cent.
Ijaiya-Oladipo assured investors that while leverage has increased, UACN continues to maintain “strong liquidity and operational efficiency.”
The Coca-Cola Company, in its latest filing, disclosed a $393 million charge related to its Nigerian operations held for sale. The beverage giant initially acquired a 40 per cent stake in CHI in 2016 before completing a full takeover in 2019.
Coca-Cola’s total investment and write-downs amount to roughly $500 million (₦180 billion at a 2019 exchange rate of ₦360/$1), equivalent to about ₦750 billion at today’s rates (₦1,500/$1).
Following the acquisition announcement on July 30, 2025, UACN’s share price rose from ₦73 to a peak of ₦83.60 by August 8, marking a 166 per cent year-to-date gain. However, it later declined to ₦66 by the end of October.
Aiyesimoju described the acquisition as a “strategic, not opportunistic” move, emphasising that UACN had prepared for years by strengthening its people, IT systems, and governance frameworks.
With CHI Limited now set to join UACN’s portfolio—alongside brands like Gala, Supreme Ice Cream, and Swan Water, the group is positioned to become a dominant player in Nigeria’s FMCG market.
Industry analysts say the move will expand UACN’s footprint in the beverage and dairy categories, aligning the conglomerate with evolving consumer preferences and boosting its long-term growth trajectory.
