Coca-Cola Co, the world's largest beverage company, announced that it will acquire all the outstanding shares of Beijing-based juice maker China Huiyuan Juice Group Ltd<1886> for HK$17.9 billion to expand its non-carbonated beverage business in China.
Atlantic Industries, Coca-Cola's wholly-owned subsidiary, has offered to pay HK$12.20 per share in Hong Kong-listed Huiyuan, which is about three times the Chinese companies' market value on Friday.
The Chinese juice maker's shares were suspended from Monday.
Zhu Xinli, founder of Huiyuan, is expected to be able to rake in HK$7.4 billion from the deal, while another shareholder Groupe Danone SA could reap HK$4.1 billion by selling all its shareholding in the Chinese company.
However, the deal is still subject to the regulatory approval from relevant government bodies in China.
The acquisition is a unique opportunity for Coca-Cola to strengthen its business in China as Huiyuan is long-established and successful juice brand in the country and highly complementary to the U.S. company, said Muhtar Kent, CEO of Coca-Cola Co. |
