UAC Secures FCCPC Approval for Chivita and Hollandia Acquisition

The Federal Competition and Consumer Protection Commission (FCCPC) has granted its approval to UAC of Nigeria Plc (UACN) for the acquisition of CHI Limited, the producer of popular beverage and dairy brands Chivita and Hollandia. This marks a significant milestone in UAC’s strategic expansion into Nigeria’s fast-moving consumer goods (FMCG) sector, signaling renewed investor confidence and a stronger drive toward market consolidation in the food and beverage industry.

The approval, which was finalized after months of regulatory review, paves the way for UACN to fully integrate CHI Limited’s operations, including its beverage, juice, and dairy portfolios, into its existing structure. This acquisition is part of UAC’s long-term strategy to strengthen its footprint in Nigeria’s consumer goods market and diversify its revenue base.

In a statement released by UACN’s management, the company described the acquisition as a “transformative step” that aligns with its goal of creating a unified food and beverage powerhouse capable of competing effectively within and outside Nigeria. “The approval from the FCCPC is an important validation of our vision to grow through value-driven acquisitions that complement our core strengths,” the statement read.

According to the company, the acquisition will allow it to leverage CHI Limited’s extensive distribution network, advanced production facilities, and strong brand equity to enhance UAC’s existing portfolio. The integration is expected to improve operational efficiency, reduce production costs, and expand product availability across the country.

UACN, one of Nigeria’s oldest conglomerates, has been repositioning itself through divestments and acquisitions to adapt to changing consumer trends and macroeconomic realities. Over the past few years, the company has focused on streamlining its business model, exiting non-core sectors, and investing in high-growth industries such as food processing, quick service restaurants, and packaging.

The FCCPC’s approval follows an extensive due diligence process to ensure that the acquisition does not distort competition or create a monopoly in Nigeria’s beverage and dairy market. The commission noted that the transaction satisfies antitrust requirements, promotes fair market practices, and aligns with the government’s broader economic diversification agenda.

Industry analysts view the acquisition as a strategic move that will reshape the competitive landscape of Nigeria’s FMCG sector. With brands like Chivita and Hollandia now under UAC’s control, the conglomerate is expected to strengthen its market position against rivals such as Nestlé, FrieslandCampina WAMCO, and Coca-Cola. The deal also reinforces investor sentiment toward Nigeria’s consumer goods industry, which remains one of the country’s most resilient sectors despite inflationary and foreign exchange challenges.

Commenting on the development, a Lagos-based market analyst, Dr. Ifeoma Okonkwo, said the approval underscores growing investor confidence in Nigeria’s regulatory environment. “The FCCPC’s transparent review process and the eventual green light signal that Nigeria’s market remains attractive for mergers and acquisitions, especially in high-demand consumer sectors. This move by UAC could set a precedent for further consolidation in the FMCG space,” she said.

CHI Limited, founded in 1980, has built a strong reputation as a leading beverage and dairy producer in West Africa. Its flagship brands, Chivita fruit juices and Hollandia dairy products, dominate their respective segments and enjoy a loyal customer base. Before this acquisition, CHI Limited was majority-owned by Coca-Cola Company, which had previously acquired a controlling stake to expand its non-carbonated product line in Africa.

For UAC, this acquisition signifies a return to dominance in Nigeria’s food and beverage industry—a sector where it was once an undisputed leader. By combining CHI Limited’s brand strength with UAC’s market reach and experience, the conglomerate aims to accelerate innovation and improve product accessibility nationwide.

The acquisition is also expected to create employment opportunities, enhance local sourcing of raw materials, and stimulate growth across the agricultural value chain. UACN has hinted at plans to invest in backward integration programs, which would see it sourcing fruits, milk, and packaging materials locally, thereby reducing reliance on imports and foreign exchange exposure.

Furthermore, UAC plans to expand CHI Limited’s export footprint to other African markets, leveraging Nigeria’s membership in the African Continental Free Trade Area (AfCFTA). This move aligns with the company’s broader vision of positioning itself as a regional powerhouse capable of meeting consumer demand beyond Nigeria’s borders.

Speaking on the acquisition, UAC Group Managing Director, Mr. Folasope Aiyesimoju, expressed optimism that the partnership with CHI Limited would deliver long-term value for shareholders and consumers alike. “This transaction gives us an opportunity to deepen our presence in categories with strong growth potential and to build a stronger, more diversified consumer goods business. We are excited about the possibilities this integration presents,” he stated.

Aiyesimoju further emphasized that the company would maintain CHI’s strong brand identity while ensuring operational synergy with UAC’s existing businesses. He assured consumers that product quality and availability would remain top priorities during and after the integration process.

Industry observers believe that the acquisition could drive increased competition and innovation in Nigeria’s beverage industry, especially in the growing health-conscious segment. As consumers shift toward fruit-based drinks and dairy alternatives, companies like UACN are expected to invest heavily in research, product development, and marketing to capture emerging demand.

With the FCCPC approval now secured, both companies are set to commence the final phase of operational and financial integration. Insiders suggest that UAC will gradually absorb CHI Limited’s workforce, harmonize its supply chain, and adopt a unified corporate governance structure.

In the medium term, analysts predict that the deal could help UACN improve its profitability and market capitalization, positioning it as one of the leading publicly listed consumer goods companies on the Nigerian Exchange. Beyond profit, the acquisition reinforces Nigeria’s attractiveness as a destination for high-value mergers and strategic partnerships within the African business landscape.

As the transaction moves forward, stakeholders will be watching closely to see how effectively UACN capitalizes on this opportunity to redefine its brand, strengthen its market relevance, and deliver consistent value in Nigeria’s competitive FMCG environment.