In a bold move that reshapes Nigeria’s fast-moving consumer goods (FMCG) landscape, UAC of Nigeria Plc (UACN) has confirmed that it deposited ₦19.2 billion in escrow as part of its acquisition of CHI Limited, the beverage giant behind the popular Chivita and Hollandia brands, from The Coca-Cola Company.
The landmark transaction, described by UACN Group Managing Director and CEO, Fola Aiyesimoju, as “years in the making,” marks a defining moment in UACN’s transformation strategy and expands its footprint across Nigeria’s competitive consumer goods market.
Acquisition Fully Funded, Awaiting Final Regulatory Steps
According to UACN’s Q3 2025 financial statements, the ₦19.2 billion escrow deposit remains in place as of September 30, 2025, pending the completion of regulatory conditions under the acquisition agreement. The Federal Competition and Consumer Protection Commission (FCCPC) has already granted its approval, clearing a major hurdle in the deal process.
The company also disclosed ₦2.2 billion in acquisition-related expenses, underscoring the scale of the transaction. Group CFO Funke Ijaiya-Oladipo, speaking during UACN’s half-year investor call, said the company maintained a disciplined capital strategy throughout the process.
“Yes, we’ve taken on more leverage, but we’ve also improved liquidity and are operating with higher efficiency,” she noted.
UACN financed the acquisition through a blend of internal resources and external borrowing. The company raised approximately ₦5.4 billion from the sale of Eurobond investments and secured about ₦43 billion in loans from a consortium including First Bank, Zenith Bank, the Bank of Industry (BOI), FSDH, and a related-party loan from Famous Brands.
A notable portion—₦16.1 billion—was sourced via commercial papers carrying an interest rate of 25%, maturing in November 2025. UACN’s other short-term obligations attract interest rates between 21.5% and 32%, alongside a corporate bond yielding 21.5%.
Coca-Cola’s Exit and Write-Down
While UACN has not disclosed the total purchase price, Coca-Cola’s filings indicate a $393 million charge tied to its Nigerian operations classified as “held for sale.” The U.S. beverage multinational had acquired an initial 40% stake in CHI in 2016 before completing a full takeover in 2019.
Coca-Cola’s total investment, including an $118 million write-down, is estimated at $500 million—equivalent to ₦180 billion at the 2019 exchange rate of ₦360/$1. Adjusted to today’s rate of ₦1,500/$1, that valuation translates to approximately ₦750 billion, highlighting the scale of Coca-Cola’s exit from Nigeria’s juice and dairy sector.
Market Response and Strategic Outlook
The market initially reacted positively to the acquisition news. UACN’s share price surged from ₦73 on July 30—the day the deal was announced—to a peak of ₦83.60 on August 8, representing a 166% year-to-date gain. However, by the end of October, the stock had corrected to ₦66, as investors assessed the company’s growing leverage position.
Speaking on the rationale behind the acquisition, Aiyesimoju emphasized long-term planning rather than opportunism.
“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 business,” he said.
UACN’s Expanding FMCG Empire
With CHI Limited now officially integrated, UACN strengthens its position as a major force in Nigeria’s consumer goods space. The addition of CHI’s Chivita fruit juices and Hollandia dairy products complements UACN’s existing portfolio, which includes household names such as Gala, Supreme Ice Cream, and Swan Water.
Industry analysts view the acquisition as a strategic move that could accelerate UACN’s growth trajectory, enhance its manufacturing scale, and deepen its penetration into Nigeria’s beverage and dairy markets.
As UACN consolidates its new assets and navigates short-term financing pressures, the company appears set on charting a long-term growth path that could redefine its role in Nigeria’s consumer goods industry.