Coke has ensured agreement with 66 per cent of the shareholders. Regulatory approval is a pre-condition for the deal to go through, after which the offer will be extended to the remaining shareholders. “We do not know when regulatory approval can be expected, but are eager to comply with any demands to move the process along,” said a Coca-Cola spokesman.
The juice segment in China is evolving rapidly, with Coca-Cola’s Guo Li Chen (Minute Maid Pulpy) frequently cited as one of the market leaders, in no small part thanks to the beverage giant’s renowned strength in distribution.
The majority of juices on offer in China, however, are in the ‘orangeade’ category, meaning they contain only about 10 per cent fruit juice. Huiyuan is China’s main producer of real fruit juices, suggesting strong synergies with Coca Cola’s current beverage line-up on the Mainland.
The US$2.5 billion acquisition would be the largest ever overseas buy for Coke. The US-based drinks company, through its wholly-owned subsidiary Atlantic Industries, will pay HK$12.20 per share in cash. The offer is almost triple Huiyuan's last closing price of HK$4.14 and values the Beijing-based juice producer at around HK$17.9bn .
Coca-Cola also offered to pay for all outstanding convertible bonds and options, bringing the total amount of the deal to as much as HK$19.6bn.
Further news
The juice segment in China is evolving rapidly, with Coca-Cola’s Guo Li Chen (Minute Maid Pulpy) frequently cited as one of the market leaders, in no small part thanks to the beverage giant’s renowned strength in distribution.
The majority of juices on offer in China, however, are in the ‘orangeade’ category, meaning they contain only about 10 per cent fruit juice. Huiyuan is China’s main producer of real fruit juices, suggesting strong synergies with Coca Cola’s current beverage line-up on the Mainland.
The US$2.5 billion acquisition would be the largest ever overseas buy for Coke. The US-based drinks company, through its wholly-owned subsidiary Atlantic Industries, will pay HK$12.20 per share in cash. The offer is almost triple Huiyuan's last closing price of HK$4.14 and values the Beijing-based juice producer at around HK$17.9bn .
Coca-Cola also offered to pay for all outstanding convertible bonds and options, bringing the total amount of the deal to as much as HK$19.6bn.
Further news
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