Coca-Cola records a $393 million impairment linked to selling Chi Limited to UAC Nigeria, marking its strategic withdrawal from Nigeria’s dairy market.
Coca-Cola has reported a $393 million loss related to the sale of its Nigerian subsidiary, Chi Limited, to UAC Nigeria Plc, formally ending its six-year direct operation in the country’s juice and dairy market.
The loss was disclosed in the beverage giant’s Third-Quarter 2025 financial results, reflecting an impairment charge tied to the sale of Chi Limited, best known for popular brands such as Hollandia and Chivita. The deal, completed earlier this year, underscores Coca-Cola’s ongoing effort to streamline its global portfolio and focus on higher-growth segments.
While Coca-Cola did not reveal the sale price, the recorded impairment indicates that the transaction’s proceeds were substantially below the company’s book value for Chi Limited. Industry analysts interpret the move as a strategic recalibration aimed at improving profitability across Coca-Cola’s emerging markets portfolio.
Coca-Cola first entered the Nigerian beverage firm in 2016, when it purchased a 40 percent stake from Tropical General Investment (TGI) Group for roughly $438 million, with an agreement to acquire the remaining shares within three years. That full takeover occurred in January 2019 for an additional $257 million, bringing Coca-Cola’s total investment in Chi Limited to about $694.5 million.
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The decision to exit follows broader restructuring efforts within the Atlanta-based company. Coca-Cola is simultaneously preparing to record a $1 billion impairment tied to its planned partial divestment from Coca-Cola Beverages Africa (CCBA) — its largest bottling operation in the continent.
Meanwhile, UAC Nigeria Plc is expected to disclose details of the Chi Limited acquisition in its third-quarter financial statement. The conglomerate recently announced plans to raise ₦65 billion through a commercial paper program. However, company sources clarified that the fundraising is unrelated to the Chi transaction, which has already been finalized.
Stanbic IBTC Capital served as the lead arranger and financial adviser to UAC Nigeria in the deal, a role seen as pivotal in structuring one of the largest consumer goods transactions in recent years within West Africa.
The sale marks a significant moment in Nigeria’s fast-moving consumer goods sector, signaling a renewed wave of local ownership in a market long dominated by multinational corporations.