NEW YORK (TheStreet) -- The Coca-Cola Co. (KO) - Get Report shares are climbing 0.12% to $42.97 Monday after the company announced this past weekend that it took a minority stake in Chi, a Nigerian beverage company that makes snacks and beverages.
In an effort to expand its footprint in Africa, Coca-Cola said it acquired an initial 40% stake in the company and plans to buy the remainder within three years, pending regulatory approval.
"For more than 30 years Chi's leadership has built a greatly admired business that has quickly grown to become Nigeria's leading producer and distributor of value-added dairy and juice products and we are delighted to enter the next phase of our growth journey together," said Nathan Kalumbu, President, Coca-Cola Eurasia and Africa.
Financial terms of the transaction were not disclosed.
Between 2010 and 2020, the company plans to increase investment in Africa to $17 billion, the Associated Press reports.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance, expanding profit margins and reasonable valuation levels.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KO