Cocacola plans 100% takeover of Chi Ltd in 3 years

The Coca-Cola Company has acquired a 40 per cent initial minority equity shareholding in Tropical General Investments Group (TGI Group), the holding company of Chi Ltd, a leading dairy and juice company in Nigeria.

The agreement will see Coca-Cola Company increasing ownership to 100 percent within three years, subject to regulatory approvals, while working on other long-term commercial structures.

This was revealed in a joint statement by both companies on Saturday.

In the statement by Chief Public Affairs and Communications Officer, The Coca-Cola Company, Dan Baxter, and Head of Performance Management Group, TGI Group of Companies, Dr. Johannes Flosbach, both companies said the agreement creates a strategic relationship within Africa’s largest economy that together serve Nigeria’s most popular sparkling soft drinks, juices, value-added dairy and water beverage brands.

This agreement brings together two of Nigeria’s most popular soft drinks, juices, value-added dairy and water beverage brands, who have also agreed to jointly discuss and explore other opportunities in the region to further develop this relationship.

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Cocacola, with this new move Nigeria’s leading value-added dairy and juice beverage brands – which include Hollandia and Chivita– has further expanded its West African portfolio of beverages, while establishing Coca-Cola’s presence in Africa’s high-growth, value-added dairy category.

The agreement will allow both companies to leverage their respective investments and expertise to further drive innovation, optimize efficiency and strengthen route-to-market to accelerate growth and increase consumer availability and choice.

TGI Group’s relationship with Coca-Cola Company will also help Chi Ltd achieve its ambitious growth plans through access to Coca‑Cola’s broad product portfolio and integration into global best practices in production, distribution and brand-building.

Speaking on the development, Nathan Kalumbu, president, Coca-Cola Eurasia and Africa said “For more than 30 years Chi’s leadership has built a greatly admired business that has quickly grown to become Nigeria’s leading producer and distributor of value-added dairy and juice products and we are delighted to enter the next phase of our growth journey together.”

On his part, Cornelis Vink, chairman of TGI Group and Chi Ltd said “We strongly believe in this journey we are starting with the Coca‑Cola Company. The relationship will allow us to expand our regional footprint and product portfolio. We stay firmly committed to growing our investments in the Nigerian economy, increasing employment and local content while supporting the communities we operate in.”

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