Global beverage giant Coca-Cola Company has agreed to acquire multi-grain drink China Culiangwang Beverages for $400m including debt, to boost its sales in the Chinese market.
This is Coke's first acquisition in China since its previous bid to purchase fruit juice maker Chian Huiyuan for $2.4bn was turned down by the country's antitrust regulator in 2010.
It is subject to approval by the Chinese Ministry of Commerce.
Specialising in "multigrain beverages" with flavours like walnut and oats, China Culiangwang will continue to develop its consumer products business after the disposal of the beverage business.
Culiangwang had assets of $219 million as of end October 2014.
In a statement as cited in Reuters, Coca-Cola said: "The proposed acquisition is in line with Coca-Cola China's strategy to continue providing a diverse range of beverage products to Chinese consumers with plant-based protein drinks representing a growing beverage category in China".Image: Coke to acquire makers of multi-grain drink China Culiangwang Beverages to broaden its portfolio."
Standard Chartered acted as the financial advisory to China Culiangwang.
Image: Coke to acquire China Culiangwang Beverages for $400m.Photo courtesy of tiverylucky/freedigitalphotos.