Coca-Cola said Wednesday it plans to buy China Huiyuan Juice
Group Ltd. For $2.4 billion, in Coke’s second largest acquisition ever, and the
largest takeover of a Chinese firm by a foreign company.
Analysts told Dow
Jones Newswires that the offer sounded high, but the purchase will allow Coke
to expand further into China’s beverage market. DJN reported that Huiyuan controls more than 40 percent of China’s
pure fruit juice market, as well as about 40 percent of the country’s nectar
Sun Hung Kai Financial analyst Fiona Wong told DJN that the deal would prevent
Coca-Cola from needing to build a distribution network and customer base in
China from scratch.
View a video clip on the deal at www.bevnet.com/news.