U.S. firm, Coca-Cola, is planning to take over Nigerian company, Chi Limited, by the end of the first quarter of 2019.
According to a report by Reuters, on Wednesday, the president of Coca-Cola’s West Africa business said the Atlanta-based company aims to complete the deal by the end of the first quarter of 2019.
“We are still on track to complete the acquisition (of Chi Ltd) by the end of the first quarter of 2019,” Mr Njonjo said.
Also in the report, Coca-Cola had bought a 40 per cent stake in the Nigerian juice and snack producer in January 2016, and aimed to increase ownership within three years.
”Coca Cola are focusing on smaller bottles and cans which would come in 30 centilitre bottle of Coke Zero for 60 naira ($0.20), compared with the standard 50 centilitre bottle for 80 naira, as just one example,” he said.
He also explained that the company’s drive is to diversify its product range which could also give more flexibility in a market.
“We realise that in certain pack formats you can only go down so low,” he reportedly said in an interview at his office in the commercial capital Lagos.
“But once you start looking at pouches and still products, like juice and drinking yoghurts, that allows you to start accessing much lower price points.”
He said the purchase of ‘costa’ could present a “significant opportunity” in Nigeria, despite the absence of a culture of hot-coffee drinking there.
“There definitely could be opportunity around ready-to-drink coffee here in Nigeria having iced coffee, blends of dairy and coffee, packaged in different formats,” he said.
Mr Njonjo said the company was working in Nigeria to collect bottles and find a way for them to be re-used through a partnership with cement-maker, Lafarge in which bottles would be burned in kilns as an energy source.
A memorandum of understanding was being formalised and would be signed in the next few weeks, he said, adding that implementation would begin in the last quarter of this year.
He said the company was also working with Lagos State government to remove waste from waterways in the city.