A new alliance between Coca-Cola and Glaceau will involve $4.1 billion as the former (wo
rld’s largest aerated drinks producer) has agreed to acquire the latter (US energy drink maker). This deal is a boon to Ta t a Group led Tata Tea – as it will bestow a windfall gain of about $1.2 billion for the 30% stake it holds in Glaceau. Tata Tea had acquired 30% stake in Glaceau for $677 million in August 2006. The deal in all probability will close in by the summer of 2007. Coke’s move has been primarily connected with portfolio expansion plans in order to compete more effectively with rival PepsiCo Inc.
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rld’s largest aerated drinks producer) has agreed to acquire the latter (US energy drink maker). This deal is a boon to Ta t a Group led Tata Tea – as it will bestow a windfall gain of about $1.2 billion for the 30% stake it holds in Glaceau. Tata Tea had acquired 30% stake in Glaceau for $677 million in August 2006. The deal in all probability will close in by the summer of 2007. Coke’s move has been primarily connected with portfolio expansion plans in order to compete more effectively with rival PepsiCo Inc.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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