Coca-Cola and Tropical General Investments Group (TGI Group), the holding company of Chi announced the binding agreement, and Coca-Cola intends to increase ownership to 100% within three years, subject to regulatory approval.
Additionally, the parties have agreed to jointly discuss and explore other opportunities in the region to further develop this relationship.
Coca-Cola said that the move for Chi – which was incorporated in 1980 and includes Hollandia and Chivita brands – further expands its West African portfolio of still beverages while establishing Coca-Cola’s presence in Africa’s high-growth value-added dairy category.
Increased investment in Africa
“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,” said Nathan Kalumbu, president, Coca-Cola Eurasia and Africa.
“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,” said Cornelis Vink, Chairman of TGI Group and Chi Ltd.
“We stay firmly committed to growing our investments in the Nigerian economy, increasing employment and local content while supporting the communities we operate in. Chi will continue to provide its consumers with innovative products in the dairy, juices and snacks categories,” he added.
In 2014, Coca-Cola announced an increased investment in Africa of $17bn from 2010 to 2020. This investment, which is roughly three times the amount invested in the previous decade, is funding new manufacturing lines, distribution capabilities and cold drink equipment while creating additional jobs.