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 US 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.
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