Stanbic IBTC Orchestrates UAC’s Strategic Takeover of CHI Limited

Stanbic IBTC Capital Limited, the investment banking arm of Stanbic IBTC Holdings Plc, has successfully acted as the lead financial adviser in UAC of Nigeria Plc’s acquisition of the majority stake in CHI Limited, the beverage and dairy producer behind iconic brands such as Chivita and Hollandia. The landmark transaction, which recently received the green light from the Federal Competition and Consumer Protection Commission (FCCPC), marks a major milestone in Nigeria’s fast-moving consumer goods (FMCG) sector and underscores UAC’s renewed focus on expanding its footprint in the food and beverage industry.

The acquisition deal, valued at over ₦20 billion, signals UAC’s ambitious growth strategy aimed at consolidating its position as a dominant player in the FMCG space, leveraging CHI Limited’s strong market presence, distribution network, and established consumer loyalty. The move also represents a homegrown consolidation effort, following years of foreign participation in Nigeria’s beverage sector.

Stanbic IBTC Capital, serving as lead financial adviser, coordinated the financial structuring and negotiations of the acquisition, ensuring compliance with all regulatory and due diligence requirements. The investment bank’s role has been widely commended by industry stakeholders for its expertise in managing complex corporate transactions and maintaining transparency throughout the process.

Speaking on the development, Chief Executive Officer of UAC of Nigeria Plc, Mr. Folasope Aiyesimoju, described the acquisition as a strategic move to drive innovation, operational efficiency, and long-term value creation for shareholders. According to him, the integration of CHI Limited into UAC’s portfolio will not only expand its revenue base but also enhance its product offerings across Nigeria and West Africa.

“This acquisition is a transformative step for UAC as we strengthen our presence in the food and beverage sector. CHI Limited’s heritage of quality and innovation perfectly aligns with our vision of delivering everyday essential products that improve the lives of Nigerians,” Aiyesimoju said.

He further highlighted that the partnership would allow UAC to tap into CHI’s strong research and development capabilities, advanced manufacturing infrastructure, and extensive distribution network. “We are excited about the opportunities this synergy presents, both for our company and our consumers,” he added.

Stanbic IBTC Capital’s Chief Executive, Funso Akere, expressed satisfaction with the successful conclusion of the deal, noting that it reinforces the institution’s commitment to facilitating strategic investments that contribute to Nigeria’s economic development. “We are proud to have advised on this landmark transaction, which exemplifies the growing confidence of local investors in the consumer goods space,” Akere said. “This acquisition not only strengthens UAC’s market position but also enhances the competitiveness of Nigeria’s manufacturing sector.”

Industry analysts have welcomed the acquisition as a positive development for the Nigerian economy, particularly amid efforts to localise ownership in key sectors. They note that CHI Limited’s acquisition by a domestic conglomerate like UAC could stimulate increased investments, local sourcing of raw materials, and job creation, while reducing the dominance of foreign-owned entities in the FMCG landscape.

CHI Limited, founded in 1980, is one of Nigeria’s leading manufacturers of fruit juices, dairy products, and snacks. Its flagship brands — Chivita 100%, Hollandia Yoghurt, and Happy Hour — enjoy strong consumer loyalty across Nigeria and other African markets. The company was previously majority-owned by The Coca-Cola Company, which acquired a controlling stake in 2019 as part of its expansion into the dairy segment. The latest transaction signifies a shift in ownership, with UAC now taking charge of the brand’s next growth phase.

Analysts have also noted that the acquisition aligns with UAC’s long-term diversification strategy. Over the past decade, the conglomerate has steadily repositioned its operations through strategic divestments, partnerships, and acquisitions, focusing on high-growth sectors such as food production, logistics, and real estate. By acquiring CHI Limited, UAC is expected to boost its consolidated revenues by over 25% within the next fiscal year, according to market projections.

The acquisition also highlights Stanbic IBTC’s expanding influence in Nigeria’s investment banking sector. Over the years, the bank has served as a trusted adviser in several major deals, including corporate bond issuances, mergers, and capital market transactions. Its role in the CHI Limited acquisition further underscores its leadership in financial advisory services and its ability to facilitate large-scale investments that align with national economic priorities.

Commenting on the regulatory approval, the Federal Competition and Consumer Protection Commission (FCCPC) confirmed that the acquisition met all competition guidelines and would not result in market dominance or anti-competitive practices. The FCCPC noted that the deal was structured to protect consumers while ensuring that local industries remain competitive and sustainable.

The transaction is also expected to bring about significant operational improvements at CHI Limited. UAC plans to implement new digital technologies, enhance supply chain efficiency, and expand export capacity for its products. Insiders have hinted that the company may also explore new product lines in plant-based beverages and fortified foods to meet the growing demand for healthier options.

For Nigeria’s FMCG industry, the acquisition sets a precedent for indigenous investment-led growth and demonstrates the potential of strategic partnerships in driving industrial transformation. It is expected that UAC’s expertise in large-scale operations and Stanbic IBTC’s financial acumen will position CHI Limited for greater expansion in both domestic and regional markets.

As UAC takes over management of CHI Limited, stakeholders are optimistic that the partnership will yield sustainable growth, enhance consumer confidence, and reinforce Nigeria’s reputation as a leading hub for food and beverage manufacturing in Africa.