Onome Amuge
The Coca-Cola Company has booked a $393 million impairment charge following the sale of its Nigerian juice and dairy subsidiary, Chi Limited, marking a costly exit from one of Africa’s largest consumer markets and underlining the beverage giant’s shift towards simplifying its global operations.
The charge, disclosed in Coca-Cola’s third-quarter 2025 results, reflects the gap between the value of its investment in Chi and the sale proceeds received from UAC Nigeria Plc, which acquired the company earlier this year. The sale concludes Coca-Cola’s six-year foray into Nigeria’s juice and dairy segment and represents a reversal for a brand that once sought to diversify aggressively across Africa’s fast-growing consumer markets.
Coca-Cola first entered Chi Limited in 2016, when it purchased a 40 per cent stake from Tropical General Investments (TGI) Group for about $438 million, with an option to take full ownership. The deal was completed in 2019 at a further cost of $257 million, bringing its total investment to $694.5 million. The latest impairment indicates Coca-Cola recouped only about half that value through its divestment to UAC Nigeria.
The exit forms part of Coca-Cola’s ongoing portfolio rationalisation strategy under chief executive James Quincey, who has spent recent years refocusing the group on core beverages and streamlining its regional structures. The company is also preparing a $1 billion charge related to the partial divestment of its stake in Coca-Cola Beverages Africa, further signalling a move towards a lighter operational footprint in emerging markets.
While the sale price of Chi Limited has not been publicly disclosed, UAC Nigeria, one of the country’s oldest conglomerates, is expected to detail the transaction in its forthcoming quarterly results. The company, which has announced a N65 billion commercial paper programme, has clarified that the debt raise is not linked to the acquisition. Stanbic IBTC Capital is acting as lead financial adviser on the deal.
