₦airaland Forum

The Coca-Cola Company has reported a $393 million impairment charge tied to the sale of Chi Limited. The disclosure appeared in its Q3 2025 financial statements, highlighting the cost of its exit from Nigeria’s juice and dairy market.

In the third quarter of 2025, Coca-Cola announced the sale of Chi Limited, makers of Hollandia and Chivita, to UAC Nigeria Plc. The deal marks the end of Coca-Cola’s six-year direct operation in Nigeria. It also signals a shift in strategy as the company focuses on simplifying its global portfolio.

Coca-Cola first entered Chi Limited in 2016, when it purchased a 40 per cent stake from Tropical General Investment (TGI) Group for about $438 million, according to BusinessDay findings. The agreement included a path to full ownership within three years. That goal was achieved in January 2019, when Coca-Cola acquired the remaining 60 percent for $257 million. In total, the company spent roughly $694.5 million on the acquisition.

The sale price to UAC Nigeria Plc has not yet been disclosed. However, Coca-Cola recorded a $393 million net loss on the transaction. This suggests that the sales proceeds were considerably lower than the book value of Chi Limited on Coca-Cola’s balance sheet.

The impairment adds to the company’s broader financial restructuring efforts. Coca-Cola is also preparing to take a $1 billion charge linked to the planned sale of part of its stake in Coca-Cola Beverages Africa (CCBA).

Meanwhile, UAC Nigeria Plc is expected to release details of the Chi acquisition in its Q3 2025 report. UACN announced plans to raise N65 billion in a new commercial paper programme. However, it is noted that the capital raise is not channelled to the Chi acquisition as that transaction is already completed.

Stanbic IBTC Capital is acting as the lead arranger, providing investment banking and advisory services to UAC Nigeria.

FarahAideed:
The Coca-Cola Company has reported a $393 million impairment charge tied to the sale of Chi Limited. The disclosure appeared in its Q3 2025 financial statements, highlighting the cost of its exit from Nigeria’s juice and dairy market.

FreeStuffsNG:
Loss kọ Logs ni. Nonsense and ingredient.

They must think that we are fools when they are touting loss and pushing it through favourable media platforms in order to avoid paying tax on the gain if they declare it.

Furthermore, Coca-Cola has a marchavelian brutal strategy of forcing out competitors by using opaque and irresistible offer to the competitor in order to literally kill them and pass on the carcass to a less discerning competitor to be distracted by the dying brand.

Coca-Cola paid $1 billion dollars to acquire Chivita, not based on any sensible valuation but to kill the competitor and later avoid paying tax in subsequent years by declaring loss. They are suggesting that FIRS should forfeit tax it would have earned for years from Chivita if the company had not been bought or a transparent valuation of Chivita had been done and that amount paid.

FIRS should hold them tight and get creative in ensuring that they don't run to South Africa and use our money to defray their tax liabilities in their homeland.

It would be nice if appropriate agencies should review the acquisition of Chivita again.

Coca-Cola International has offered to buy out Coca-Cola Africa which owns the controlling interests in Coca-Cola Africa. Coca-Cola Africa is owned by the South African Gustche family.

FIRS should shine its eyes! They are free to divest to Coca-Cola USA but they must pay all the statutory fees and FCCPC too should get involved.

Immatex:
Does this mean Coca-cola products consumed in Nigeria will be imported and more expensive?

Perhaps it’s time Nigeria consumers enjoy ‘Made in Nigeria’ carbonated drinks - value for money options.

FreeStuffsNG:
Loss kọ Logs ni. Nonsense and ingredient.

They must think that we are fools when they are touting loss and pushing it through favourable media platforms in order to avoid paying tax on the gain if they declare it.

Furthermore, Coca-Cola has a marchavelian brutal strategy of forcing out competitors by using opaque and irresistible offer to the competitor in order to literally kill them and pass on the carcass to a less discerning competitor to be distracted by the dying brand.

Coca-Cola paid $1 billion dollars to acquire Chivita, not based on any sensible valuation but to kill the competitor and later avoid paying tax in subsequent years by declaring loss. They are suggesting that FIRS should forfeit tax it would have earned for years from Chivita if the company had not been bought or a transparent valuation of Chivita had been done and that amount paid.

FIRS should hold them tight and get creative in ensuring that they don't run to South Africa and use our money to defray their tax liabilities in their homeland.

It would be nice if appropriate agencies should review the acquisition of Chivita again.

Coca-Cola Internationa(HBC) has offered to pay billions of dollars to buy out Coca-Cola Africa which owns the controlling interests in Coca-Cola Africa. Coca-Cola Africa is owned by the South African Gustche family.

FIRS should shine its eyes! They are free to divest to Coca-Cola USA but they must pay all the statutory fees and FCCPC too should get involved.

The South African Gustche family want to cash out big time, avoid paying huge tax to Nigeria as HBC expands into Africa especially the Nigerian market.

It's UACN that fell mugu that I pity most. Won ti gba yin Mr UACN sir! Chivita was not even worth the $1 billion dollars valuation that Coca-Cola claimed it was worth and it's Chivita carcass that you have even overpaid for!

If I were on the UACN Board of Directors ehn, that deal will not fly or would have been at rock bottom price. Sincerely, I will do everything within my power in a God-fearing, lawful and factually persuasive, compelling manner to protect UACN and its shareholders.

Immatex:
Does this mean Coca-cola products consumed in Nigeria will be imported and more expensive?

Perhaps it’s time Nigeria consumers enjoy ‘Made in Nigeria’ carbonated drinks - value for money options.

Sheuns:
You said all these but failed to give us the value you think Chi Limited was before CocaCola bought it.

FreeStuffsNG:
Loss kọ Logs ni. Nonsense and ingredient.

They must think that we are fools when they are touting loss and pushing it through favourable media platforms in order to avoid paying tax on the gain if they declare it.

Furthermore, Coca-Cola has a marchavelian brutal strategy of forcing out competitors by using opaque and irresistible offer to the competitor in order to literally kill them and pass on the carcass to a less discerning competitor to be distracted by the dying brand.

Coca-Cola paid $1 billion dollars to acquire Chivita, not based on any sensible valuation but to kill the competitor and later avoid paying tax in subsequent years by declaring loss. They are suggesting that FIRS should forfeit tax it would have earned for years from Chivita if the company had not been bought or a transparent valuation of Chivita had been done and that amount paid.

FIRS should hold them tight and get creative in ensuring that they don't run to South Africa and use our money to defray their tax liabilities in their homeland.

It would be nice if appropriate agencies should review the acquisition of Chivita again.

Coca-Cola Internationa(HBC) has offered to pay billions of dollars to buy out Coca-Cola Africa which owns the controlling interests in Coca-Cola Africa. Coca-Cola Africa is owned by the South African Gustche family.

FIRS should shine its eyes! They are free to divest to Coca-Cola USA but they must pay all the statutory fees and FCCPC too should get involved.

The South African Gustche family want to cash out big time, avoid paying huge tax to Nigeria as HBC expands into Africa especially the Nigerian market.

It's UACN that fell mugu that I pity most. Won ti gba yin Mr UACN sir! Chivita was not even worth the $1 billion dollars valuation that Coca-Cola claimed it was worth and it's Chivita carcass that you have even overpaid for!

If I were on the UACN Board of Directors ehn, that deal will not fly or would have been at rock bottom price. Sincerely, I will do everything within my power in a God-fearing, lawful and factually persuasive, compelling manner to protect UACN and its shareholders.

phineas:
Let's start with products made by chi so you all have an idea what they say was not profitable.

Someone please help confirm and expand...but it appears

Caprisunn that naija kids take everyday is on the list
Hollandia drinks
Berry blast
That pulpy drink series

Someone,anyone please help with the list....

FarahAideed:
Coca-Cola first entered Chi Limited in 2016, when it purchased a 40 per cent stake from Tropical General Investment (TGI) Group for about $438 million, according to BusinessDay findings. The agreement included a path to full ownership within three years. That goal was achieved in January 2019, when Coca-Cola acquired the remaining 60 percent for $257 million. In total, the company spent roughly $694.5 million on the acquisition.

anonimi:
Why did it cost more to get 40% of the company than it cost to get the 60%

FreeStuffsNG:
Loss kọ Logs ni. Nonsense and ingredient.

They must think that we are fools when they are touting loss and pushing it through favourable media platforms in order to avoid paying tax on the gain if they declare it.

Furthermore, Coca-Cola has a marchavelian brutal strategy of forcing out competitors by using opaque and irresistible offer to the competitor in order to literally kill them and pass on the carcass to a less discerning competitor to be distracted by the dying brand.

Coca-Cola paid $1 billion dollars to acquire Chivita, not based on any sensible valuation but to kill the competitor and later avoid paying tax in subsequent years by declaring loss. They are suggesting that FIRS should forfeit tax it would have earned for years from Chivita if the company had not been bought or a transparent valuation of Chivita had been done and that amount paid.

FIRS should hold them tight and get creative in ensuring that they don't run to South Africa and use our money to defray their tax liabilities in their homeland.

It would be nice if appropriate agencies should review the acquisition of Chivita again.

Coca-Cola Internationa(HBC) has offered to pay billions of dollars to buy out Coca-Cola Africa which owns the controlling interests in Coca-Cola Africa. Coca-Cola Africa is owned by the South African Gustche family.

FIRS should shine its eyes! They are free to divest to Coca-Cola USA but they must pay all the statutory fees and FCCPC too should get involved.

The South African Gustche family want to cash out big time, avoid paying huge tax to Nigeria as HBC expands into Africa especially the Nigerian market.

It's UACN that fell mugu that I pity most. Won ti gba yin Mr UACN sir! Chivita was not even worth the $1 billion dollars valuation that Coca-Cola claimed it was worth and it's Chivita carcass that you have even overpaid for!

If I were on the UACN Board of Directors ehn, that deal will not fly or would have been at rock bottom price. Sincerely, I will do everything within my power in a God-fearing, lawful and factually persuasive, compelling manner to protect UACN and its shareholders.

phineas:
Let's start with products made by chi so you all have an idea what they say was not profitable.

Someone please help confirm and expand...but it appears

Caprisunn that naija kids take everyday is on the list
Hollandia drinks
Berry blast
That pulpy drink series

Someone,anyone please help with the list....

Sheuns:
You said all these but failed to give us the value you think Chi Limited was before CocaCola bought it.

dalongjnr:
It's just disgusting 🫣 how Coca-Cola/UAC literally killed competition and competitors in the beverage industry, by directly acquiring rival companies but always making it to flops.

FarahAideed:
The Coca-Cola Company has reported a $393 million impairment charge tied to the sale of Chi Limited. The disclosure appeared in its Q3 2025 financial statements, highlighting the cost of its exit from Nigeria’s juice and dairy market.

In the third quarter of 2025, Coca-Cola announced the sale of Chi Limited, makers of Hollandia and Chivita, to UAC Nigeria Plc. The deal marks the end of Coca-Cola’s six-year direct operation in Nigeria. It also signals a shift in strategy as the company focuses on simplifying its global portfolio.

Coca-Cola first entered Chi Limited in 2016, when it purchased a 40 per cent stake from Tropical General Investment (TGI) Group for about $438 million, according to BusinessDay findings. The agreement included a path to full ownership within three years. That goal was achieved in January 2019, when Coca-Cola acquired the remaining 60 percent for $257 million. In total, the company spent roughly $694.5 million on the acquisition.

The sale price to UAC Nigeria Plc has not yet been disclosed. However, Coca-Cola recorded a $393 million net loss on the transaction. This suggests that the sales proceeds were considerably lower than the book value of Chi Limited on Coca-Cola’s balance sheet.

The impairment adds to the company’s broader financial restructuring efforts. Coca-Cola is also preparing to take a $1 billion charge linked to the planned sale of part of its stake in Coca-Cola Beverages Africa (CCBA).

Meanwhile, UAC Nigeria Plc is expected to release details of the Chi acquisition in its Q3 2025 report. UACN announced plans to raise N65 billion in a new commercial paper programme. However, it is noted that the capital raise is not channelled to the Chi acquisition as that transaction is already completed.

Stanbic IBTC Capital is acting as the lead arranger, providing investment banking and advisory services to UAC Nigeria.
https://businessday.ng/companies/article/coca-cola-records-393-million-loss-in-sale-of-chi-limited/