Coca-Cola Near To Acquire Glaceau

Mumbai: The Coca-Cola Company has registered a premerger notification with the US regulators regarding the proposed acquisition of vitamin water maker Glaceau. The report witnessed the shares of Tata Tea surging by 4.4 per cent on a day when the BSE Sensex increased by 0.24 per cent. The Tata group, including holding company Tata Sons and Tata Tea, holds a 30 per cent stake in Glaceau. However, the market estimates that Coca-Cola will have to shell out anywhere between $3 billion and $4 billion for the stake in Glaceau. The notification is required for proposed deals of significant sizes so that the FTC and Department of Justice can assess whether the deals are likely to reduce competition in the marketplace. Over the last year, Glaceau has grown to be the third largest player in the beverages business in the United States. The Tata group had taken over a 30 per cent stake in the enhanced water company in August last year for $677 million.