Coke buys $2.68 billion stake in Monster
Published on Aug 15, 2014 9:31 AM
NEW YORK (AFP) - Coca-Cola announced Thursday it will pay US$2.15 billion (S$2.68 billion) for a 16.7 per cent stake in Monster Beverage, cementing a distribution-based link between the two that had added significantly to Coke's profits.
The deal would lock in for the soft drink giant a share of the energy drink market, where its own brands have lagged far behind Monster Energy and rival Red Bull.
Coke will transfer ownership of its energy drink unit - brands including NOS, Full Throttle and Burn - to Monster, and take over Monster's non-energy brands like Hansen's Natural Sodas, Peace Tea and Hubert's Lemonade.
Meanwhile, Coke will expand its distribution of Monster drinks under long-term deals, and put two directors on the Monster board.
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