Coke bids for Chinese juice firm
Coca-Cola has made a $2.4 billion (£1.34 billion) cash bid for China Huiyuan Juice Group, the country’s biggest juice-maker, in what could be China`s biggest corporate takeover by a foreign company.
The Atlanta-based US company has been in China since 1979 and is well known for its Coca-Cola, Sprite and Fanta sparkling drinks. It has also introduced a number of still drinks, including Guo Li Chen (Minute Maid Pulpy) and Yuan Ye (Original Leaf Tea).
If successful, the deal would make Coca-Cola the only major foreign presence in China’s fast-growing fruit juice sector, and also give Coca-Cola its first production facilities in China.
Coca-Cola boss Muhtar Kent said the acquisition "will provide a unique opportunity to strengthen our business in China, especially since the juice segment is so dynamic and fast growing."
Huiyuan has been supplying juices to Wal-mart stores in the US since last year, and was a sponsor of China’s first America’s Cup sailing team last year.
The only bigger acquisitions by foreign companies in China so far have been minority stakes in Chinese banks, according to data from Thomson Reuters.
Copyright © PA Business 2008
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