New York: Beverages giant Coca-Cola plans to acquire the US energy-drink firm Glaceau, in which Tata Tea has a 30% stake. The deal could be worth more than $3 billion (Rs12,300 crore), US media reports said on Wednesday.
The reports quoted unnamed sources as saying the world’s largest soft drink maker is in serious negotiations to acquire a?part or all of Glaceau. These talks are said to be a bid by the firm to reverse its declining sales momentum.
Shares of Tata Tea—which had bought the 30% stake for $677 million in August last year—closed at Rs773.35 on the Bombay Stock Exchange, 14.8% above its previous close. When contacted, a Tata Tea spokesperson declined to comment. Officials at Coca-Cola could not be immediately contacted.
Based on the price of Tatas’ acquisition, Whitestone, New York-based Glaceau could be worth about $2.25 billion. It wasn’t clear whether Coca-Cola was looking to buy the Tatas’ stake, but brokers said the sharp rally in Tata Tea’s shares was triggered by expectations that the company could reap a huge premium on its Glaceau stake if Coca-Cola decides to acquire 100% of Glaceau.
In February this year, Coke had acquired Fuze Beverage, a maker of energy, tea and vitamin drinks, and is also reported to have been in talks to acquire Arizona Teas.