Coca-Cola completes acquisition of Chi Ltd

Global beverage giant Coca-Cola has taken a significant step in expanding its footprint in Africa with the recent acquisition of Chi Ltd, a leading Nigerian beverage company. The acquisition, which was finalized on Monday, marks the completion of Coca-Cola's transition from a minority investor to full ownership of Chi Ltd. In a recent interview with CNBC Africa, Peter Njonjo, President of Coca-Cola West Africa Business Unit, discussed the company's journey with Chi and the strategic importance of this acquisition. Njonjo highlighted the company's long-term commitment to the Nigerian market and its confidence in the country's consumer opportunity. Coca-Cola initially acquired a 40% stake in Chi Ltd in January 2016, and over the past three years, they have been operating as a minority interest, familiarizing themselves with the business and the market. The decision to fully acquire the remaining 60% of Chi Ltd underscores Coca-Cola's belief in the Nigerian economy and its potential for growth. Njonjo emphasized that the acquisition is a testament to Coca-Cola's confidence in the Nigerian consumer and the long-term prospects of the market. In terms of market impact, Njonjo stated that the acquisition of Chi Ltd would allow Coca-Cola to enter new beverage categories, including juice, dairy, and snacks. This expansion of product range positions Coca-Cola as a major player in the non-alcoholic ready-to-drink segment in Nigeria. With the acquisition, Coca-Cola aims to enhance its market share and drive aggressive growth across various segments. Njonjo also outlined Coca-Cola's strategy for the region, highlighting the affordability and widespread distribution of Chi's beverages. The company's goal is to offer consumers a wide range of choices that align with their disposable income levels. Additionally, Coca-Cola plans to leverage Chi's innovative products to expand its presence beyond Nigeria and establish a multinational brand originating from Africa. The company sees potential in introducing Chi's brands to other markets in Africa and potentially even in Asia. Looking ahead, Njonjo expressed Coca-Cola's bullish approach towards acquisitions, indicating a strong appetite for strategic investments in line with their 'beverages for life' platform. While future acquisitions may not be as significant as the Chi Ltd deal, Coca-Cola remains open to exploring opportunities that align with their growth strategy in the region. Overall, Coca-Cola's acquisition of Chi Ltd represents a significant milestone in the company's expansion in Africa, particularly in Nigeria. The move underscores Coca-Cola's commitment to investing in emerging markets and leveraging strategic acquisitions to strengthen its position in the beverage industry.