Coca-Cola acquires 40% stake in Nigerian juice and snack maker Chi Ltd

US beverage giant Coca-Cola Inc has acquired a 40per cent stake in Nigerian juice and snack producer Chi Ltd, for a reported $400 million in order to expand in Africa.

The two companies said in a joint statement that Coca-Cola acquired the stake from Africa focused investment company TGI Group.

''Coca-Cola "intends to increase ownership within three years, subject to regulatory approvals while working on other long-term commercial structures," the statement added.

In 2014, Coca-Cola had said that it would invest $5 billion in Africa in its bottling partners over six years.

Lagos-based Chi Ltd produces fruit drinks and fruit juices. It also produces a range of dairy products like Hollandia Evaporated Milk, Hollandia UHT Milk and Hollandia Drinking Yogurt and a range of snack foods like Muff the Muffins, Beefie Beef Rolls, Chi Superbite Sausage Roll and Chi Classic Cake.

The company has 20 depots across Nigeria and sells its juice and dairy products in about 12 African countries.

Chi also runs a chain of retail stores called Chi Shoppe selling fresh frozen food, beverages, snacks and home care products in Nigeria.