Coca-Cola Co. (KO) in its effort to expand its footprint in Africa, announced on Monday that it has acquired 40% stake in Chi, a Nigerian beverage company. Chi is well known for making snacks and beverages in Nigeria, and has grown to become the leading producer and distributor of dairy and juice products. It has been in existence for 30 years, during which an admirable and thriving business was built making it the perfect candidate for Coca-Cola.
Coca-Cola’s share prices went up 0.12% as a result of the acquisiton to $42.97, and a spokesperson of the company said that they will buy more stake in Chi, pending regulatory approval.Nathan Kalumbu, President, Coca-Cola Eurasia and Africa said that the acquisition of stocks in Chi wa just the beggining, because the company plans to increase investment in Africa to $17 billion, between 2010 and 2020. Coca-Cola is noted for its notable return on equity, solid stock price performance, expanding profit margins and reasonable valuation levels.

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