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 United States 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.
pmnews
this is very important for Nigeia considering the situation of our economic at the moment... although coca cola is owned by USA, but is still one of our consistent economical production company in Nigeria till date... Nice 1 #coke....
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