Coke to acquire leading Chinese juicemaker

Coca-Cola, the world's biggest beverage company, is set to acquire China Huiyan Juice Group for $2.5 billion to expand its operations in one of the world's fastest growing markets.  The drinks giant has offered 12.20 Hong Kong dollars per share ($1.56)ÔÇöabout three times HuiyanÔÇÖs closing price last FridayÔÇöin a deal which values the Beijing-based juice producer at around HK$17.9 billion ($2.3 billion).┬á┬á Coca-Cola has also offered to pay for all outstanding convertible bonds and options, bringing the total amount of the deal to as much as $2.5 billion. The deal price would mark Coke's largest acquisition by value in China. It would also mark the largest-ever takeover in China's food and beverage industry and the biggest acquisition in China this year, according to data tracking firm Dealogic. ┬á┬áCoke has had operations in China since 1979. As well as its flagship Coca-Cola and Sprite and Fanta brands, it has introduced in recent years a number of non-carbonated beverages, including Guo Li Chen (Minute Maid Pulpy) and Yuan Ye (Original Leaf Tea). ┬á┬á While the Chinese pure fruit juice sector is relatively small, Huiyan has a 43 percent share and the market is expected to grow as wages and living standards continue to improve.┬á┬á"This acquisition will deliver value to our shareholders and provide a unique opportunity to strengthen our business in China," said Coca-Cola CEO Muhtar Kent. "There are anticipated synergies that will drive operational and cost efficiencies, particularly in Huiyuan's production footprint and in The Coca-Cola Company's distribution and raw material purchasing capabilities," the companies said in their statement. ┬á┬á Irrevocable undertakings for acceptance of the offer have been given by three shareholders, representing approximately 66 percent of the Huiyuan shares. French food group Danone, which owns 23 percent of Huiyan, is understood to be one. Coke said the purchase requires approval from Chinese regulators, however, who have been known to block overseas takeovers in the past.  ┬á┬á Read Coca-ColaÔÇÖs press statement here.  ┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *