UAC Nigeria Plc has deposited N19.2bn as part of its share purchase agreement for the acquisition of CHI Limited, marking the most significant corporate transaction in Nigeria’s fast-moving consumer goods space this year. The transaction represents a major consolidation move in West Africa’s beverage and dairy market.
According to the group’s third-quarter 2025 financial statement, the amount represents a portion of the total purchase consideration for the acquisition. However, the full transaction value remains undisclosed by the Lagos-based conglomerate.
To fund the transaction, UAC Nigeria disposed of all its Eurobond investments during the review period. As of June 30, 2025, the group held Federal Government of Nigeria Eurobonds, Ecobank Transnational Incorporated Eurobonds, and Ecobank Nigeria Eurobonds, totalling N5.58bn, which were sold for N5.5bn to generate liquidity for the CHI acquisition.
While the company reported a net operating cash flow of N18.1bn for the first nine months of 2025, it remains unclear whether part of its N43.2bn in new borrowings was directed toward the CHI deposit. The transaction appears to be financed through a combination of asset disposals, internal cash generation, and debt.
On July 29, 2025, UAC Nigeria announced that it had reached an agreement to acquire CHI Limited, the manufacturer of popular beverage and dairy brands such as Hollandia and Chivita, from The Coca-Cola Company. The American beverage giant initially acquired a 40 per cent stake in CHI in 2016 before completing a full takeover in 2019.
According to available information, The Coca-Cola Company spent approximately $694.5m, equivalent to between N160bn and N170bn at the time, to acquire CHI Limited. However, just six years later, Coca-Cola exited the Nigerian business, taking a $393m loss on its investment.
The divestment underscores the company’s growing caution toward the volatile Nigerian market, where the naira has lost nearly 80 per cent of its value between 2019 and 2025. Coca-Cola’s retreat highlights a broader trend of multinational companies reassessing their exposure to Nigeria’s difficult operating environment, which has been characterised by currency instability, inflationary pressures, and rising production costs since 2020.
UAC Nigeria reported a net loss of N1.98bn in the third quarter of 2025, its first quarterly loss in two years. This brings its nine-month net profit to N5.38bn, a 61 per cent decline from N13.7bn in the same period of 2024.
Operating profit grew by 9.1 per cent year-on-year to N13.4bn, up from N12.3bn in the first nine months of 2024. The group, however, faced a sluggish third quarter, with revenue dipping 1.5 per cent year-on-year to N49.2bn, compared to N49.9bn in the third quarter of 2024.
When adjusted for a one-off foreign exchange gain of N10.2bn recorded in the first nine months of 2024, UAC’s normalised net income showed a strong rebound, rising by 66 per cent year-on-year. Net operating cash flow surged 69 per cent to N21.6bn, up from N12.8bn a year earlier.
For UAC Nigeria, the CHI acquisition signals a strategic pivot toward stronger brand consolidation as it enters the dairy and ready-to-drink market. The company’s decision to deploy substantial capital suggests confidence in Nigeria’s consumption patterns despite challenging economic conditions.
UAC Nigeria Plc operates as a diversified conglomerate with interests in food processing, real estate, logistics, and paint manufacturing across Nigeria and other West African markets.
