The Coca Cola company’s market value rose by about one percent, following the full acquisition of Nigerian beverage marker, Chi Limited, on Wednesday.
This rise in share price pushed Coca Cola’s market value to $204 billion on the New York Stock Exchange as sentiments remained positive after one of the company’s biggest acquisition since Costa Coffee.
Its value has continued to grow following the acquisition, as its share price currently stands at $48.50, from $47.02 prior to the acquisition.
This has pushed the current market value to $204.8 billion — more than half (or 55 percent) of Nigeria’s gross domestic product (GDP), according to World Bank figures.
On Wednesday, Coca Cola acquired 60 percent stake in Chi Limited for an undisclosed fee, after buying 40 percent of the juice maker for $240 million in 2016.
Peter Njonjo, president of the West Africa business unit of Coca-Cola, had said on Wednesday that “Coca-Cola is continuing to evolve as a total beverage company, and Chi’s diverse range of beverages perfectly complements our existing portfolio, enabling us to accelerate expansion into new categories and grow our business in Africa”.
We will support the Chi management team in building on the company’s remarkable heritage and achievements while using the scale of the Coca-Cola system to replicate their success in more markets across Africa.”
Chi Limited was incorporated by Dutch entrepreneur, Cornelis Vink, in Lagos in 1980, and it began production in the same year.
It produces juice under the Chivita brand, Caprisonne and was the pioneer in the industry in the use of Tetra Pak packaging for its dairy product, Hollandia, value-added dairy under the Hollandia brand.
Following the decision of the Commonwealth to reduce sugar consumption across its 53 countries, Coca Cola and major beverage makers are cutting down on sugary drinks for other alternatives.
It is estimated that Nigerians spend as much as N4.65 billion on non-alcoholic drinks every day.