Coca-Cola makes record bid for Chinese juice firm

[AlphaCentauri]

Source: Guardian UK

Coca-Cola has bid $2.5bn (£1.4bn) for a Chinese juice-making company in what is thought to be the country's biggest foreign takeover.

The world's largest soft drinks manufacturer is buying Huiyuan to increase its market share and tap into a growing demand for healthy beverages.

The bid of HK$12.20 (86p) a share in cash - nearly three times Huiyuan's last closing price on the Hong Kong stock market of HK$4.14 - values the juice producer at around HK$17.9bn. But Coca-Cola will also pay for all outstanding shares, bonds and options, bringing the total amount of the deal to as much as HK$19.6bn.

Numerous attempted acquisitions by foreign companies have fallen foul of regulatory red tape and other complications in China. But the Beijing-based firm's shares soared by 170% following the companies' joint statement to the Hong Kong stock exchange, which announced that Huiyuan had secured "irrevocable undertakings" from its three largest shareholders to accept the deal. They include Zhu Xinli, Huiyuan's founder and president, who has agreed to sell his 42% stake, and Group Danone SA, which owns 23%.



Read more: http://www.guardian.co.uk/business/2008/sep/03/cocacola.fooddrinks

[Auggie]

1. It can't be good for any one company to control a product category that large.

[grilled onions]

2. Huiyuan..The Pause That Refreshes?

Somehow it just doesn't roll off the tongue!!

[Earth_First]

3. Anti-union Coca-Cola joins forces with anti-union Chinese government...

it's a match made in...well, hell.

[KansDem]

4. Quick! Buy stock in high fructose corn syrup!

Coca-Cola will be stuffing it into all their new product lines!