Sector News

Coca-Cola takes stake in Nigerian juice maker Chi

February 2, 2016
Diversity & Inclusion

(Reuters) – Coca-Cola has bought a 40 percent stake in Nigerian juice and snack producer Chi Ltd, it said on Saturday, as it continues to expand in Africa to tap a young and fast-growing population.

The U.S. drinks giant bought the stake from unlisted TGI Group, the two companies said in a joint statement, but did not disclose the value of the sale.

Coca-Cola “intends to increase ownership within three years, subject to regulatory approvals while working on other long-term commercial structures”, the statement said.

It already has a significant presence in Nigeria selling its fizzy drinks.

One industry source said Coca-Cola was paying a “triple-digit-million-dollar” amount for the stake. Sources told Reuters last year Chi was valued at as much as $1 billion.

Lagos-based Chi Ltd, whose owners had been considering a sale for some time, produces mostly fruit drinks, iced teas, snacks and dairy products. TGI is owned by a European family, according to industry sources.

“The parties have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship,” the statement said, without elaborating.

The investment comes as Nigeria faces one of its worst economic crises for decades as a slump in oil prices has eroded public finances, hammered its currency and hit consumer sentiment.

In August 2014, Coca-Cola said it would invest $5 billion with African bottling partners in new manufacturing lines and equipment, as well as safe water access programmes, over six years.

(Reporting by Ulf Laessing; Editing by Louise Ireland and Susan Fenton)

Related News

July 31, 2021

Driving purpose and profit through financial inclusion

Diversity & Inclusion

For financial institutions, “doing good” and “doing well” no longer need to be separate goals. Learn how firms can align purpose and profit to help meet the needs of the underserved market.

July 25, 2021

Novartis is about to start ringing up peers to join ambitious new diversity program

Diversity & Inclusion

The Swiss drugmaker has launched an ambitious diversity and inclusion program that includes funding for historically Black colleges and universities, mentoring, a new clinical trials center and data quality research, among other goals.

July 18, 2021

Britain’s financial bosses could see pay linked to workforce diversity

Diversity & Inclusion

The Bank of England and Financial Conduct Authority said increased diversity and inclusion improved how companies were run and how decisions were taken, creating a more innovative industry that offers better products to consumers.

Send this to a friend