It is reported that Coca-Cola plans to acquire US energy drink firm Glaceau, in a deal that could be worth over $3 billion. Tata Tea has 30 per cent stake in the firm, having bought the same at $677 million in August 2006. The Tatas had valued Glaceau at $2.2 billion in August 2006. The latest reports sent shares of Tata Tea soaring by close to 15 per cent on the Indian bourses. Shares closed at Rs 773.35 on the Bombay Stock Exchange, against the previous close of Rs 673.70.
Glaceau is a maker of enhanced water, considered to be a health beverage in the United States. One of the fastest growing brands in the US beverage market, Glaceau has been reporting 100 per cent annual growth in recent years. Glaceau founder J Darius Bikoff, his family, associates and distributors hold about 50 per cent in the company, with the remaining 20 per cent held by venture capital funds.
Tata Tea is India’s largest domestic tea producer.