Coke thirsty for energy drink maker

22 May 2007

Mumbai: Global soft drink giant Coca-Cola is in intense talks with energy drink maker Glaceau - in which the Tata Group holds a 30 per cent sake - a possible acquisition, media reports said.

The privately-held Glaceau makes and markets products like Vitaminwater, Smartwater, and a new line of Vitaminwater-derived energy drinks.

Coca-Cola has filed a pre-merger notification with the US anti-trust regulators, the Federal Trade Commission, trade publication Beverage Digest reported.

Such filings become mandatory for mergers and acquisitions that could reduce competition, lead to higher prices, lower quality of goods or services, or decreases innovation. Such filings trigger review of any possible antitrust implications of the proposed deal.

It could mean several things ranging from Coke having an agreement to acquire Glaceau to Coke having a non-binding letter of intent for such a deal, the report said.

Glaceau, in which Tata Tea had acquired a 30 per cent stake for $677 million in August last year, was reported to be on Coke's takeover radar earlier last month.