Coca-Cola goes shopping in China

The Coca-Cola Company, the world's biggest beverage company, moved to expand its operations in the fast-growing Chinese market today with a 2.5 billion dollar bid for major juicemaker China Huiyuan Juice Group Limited. Under the deal, Coca-Cola's wholly-owned subsidiary Atlantic Industries would purchase the Chinese company's shares for one dollar 56 cents each, almost triple their last closing price. That would value the Beijing-based juice producer at around HK$17.9 billion ($2.3 billion). Coca-Cola also offered to pay for all outstanding convertible bonds and options, bringing the total amount of the deal to as much as 2.51 billion dollars. According to research firm Dealogic, it is the largest-ever deal in China's food and beverage industry. If approved by regulators, the acquisition would mark Coca-Cola's biggest in China since it began operating in the country in 1979 and boost its market share overseas at a time when U.S. soda sales are slowing. Huiyuan is China's leading maker of pure fruit juices and nectars with about 31 production facilities. Analysts estimate it has about 42 percent of the pure juice market.

(Associated Press)