Giant soda manufacturer, Coca-Cola has bought a 40 percent stake in Nigerian juice and snack producer Chi Ltd, it said on Saturday, January 30.
The U.S. drinks maker 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.
