The Federal Competition and Consumer Protection Commission (FCCPC) has officially approved the sale of Chivita|Hollandia (CHI Limited) to UAC of Nigeria PLC (UAC), marking a significant milestone in Nigeria’s fast-moving consumer goods (FMCG) industry.
UAC announced the completion of the acquisition in a press release on October 3, 2025, following regulatory clearance from the FCCPC. The transaction, initially disclosed on July 30, 2025, transfers ownership of CHI Limited—known for its iconic Chivita juice and Hollandia dairy brands—from The Coca-Cola Company to UAC.
A Strategic Move in Nigeria’s FMCG Landscape
The acquisition strengthens UAC’s footprint in Nigeria’s competitive FMCG sector, particularly within the juice and dairy markets—two of the fastest-growing consumer segments in West Africa.
Fola Aiyesimoju, Group Managing Director of UAC, described the move as both strategic and symbolic.
“We are excited to officially welcome the Chivita|Hollandia team and brands into the UAC family, and we are eager to work together to build on their strong legacy and market leadership,” he said.
Eelco Weber, Managing Director of CHI Limited, echoed this optimism, emphasizing the opportunity for growth under local leadership.
“We are pleased to have received regulatory approval for this transaction. We look forward to a smooth transition and to seeing Chivita|Hollandia thrive under UAC’s ownership,” he stated.
Industry analysts say the acquisition is likely to reshape competition in Nigeria’s beverage and dairy sectors, creating a more diversified and innovation-driven market dynamic.
Why the Deal Matters
The deal represents more than a transfer of ownership—it signals a broader shift toward localized control of value chains in Nigeria’s consumer goods industry.
By acquiring CHI Limited, UAC now controls two of Nigeria’s most recognizable household brands, giving it stronger pricing power, enhanced production capacity, and a distribution network that reaches millions of consumers nationwide.
For UAC, which has traditionally operated across real estate, paints, and animal feeds, this acquisition consolidates its return to consumer-focused innovation—a segment where it has deep historical roots.
UAC’s Financial Momentum
The acquisition announcement coincided with UAC’s release of its half-year 2025 financial results, showing strong topline growth despite mixed earnings performance.
- Revenue: ₦110.4 billion — up 33% year-on-year, representing 56% of the company’s 2024 full-year turnover.
- Operating Profit: ₦12.59 billion — nearly double the H1 2024 figure, reflecting stronger operational efficiency.
- Pre-Tax Profit: ₦11.1 billion — down 25% year-on-year, due largely to the absence of foreign exchange gains recorded in 2024.
Funke Ijaiya-Oladipo, Group Finance Director at UAC, clarified that the decline in pre-tax profit was “purely a function of FX gains normalization,” and does not indicate a weakening in core business performance.
Market Reaction: Investors Reward UAC’s Expansion
The capital market has reacted positively to UAC’s strategic direction. As of October 3, 2025, the company’s share price has surged 134% year-to-date, a remarkable climb from a 30% gain in June.
On Friday, UAC’s stock price rose 10% intraday, reflecting strong investor confidence and enthusiasm over the long-term benefits of the Chivita|Hollandia acquisition.
Analysts believe the transaction could boost UAC’s valuation further as integration proceeds and synergies begin to materialize.
Innovation and Localization in FMCG
This acquisition underscores a growing trend in Nigeria’s consumer sector: the localization of ownership and production. With rising costs of importation, currency volatility, and increasing consumer sophistication, major FMCG players are prioritizing local innovation, supply chain efficiency, and sustainability.
By taking control of CHI Limited, UAC gains access to state-of-the-art processing plants and an established innovation pipeline for new product development—a critical advantage in Nigeria’s evolving food and beverage market.
Beyond corporate strategy, the deal also highlights the growing role of regulatory oversight and competition policy in shaping fair market outcomes. The FCCPC’s swift approval reflects ongoing efforts to foster a balanced environment where acquisitions promote consumer welfare and long-term industrial growth.
Looking Ahead
The UAC–CHI Limited deal may serve as a blueprint for future acquisitions in Nigeria’s FMCG sector—especially as conglomerates seek to consolidate portfolios and deepen their domestic presence.
If successfully integrated, Chivita and Hollandia could help UAC unlock new revenue streams and strengthen its position as a leader in locally driven innovation, capable of competing not just within Nigeria, but across Africa’s consumer markets.
