labels: soft drinks, tata group, m&a
Tata eyeing Cadbury`s Snapplenews
30 June 2007

Mumbai: According to reports the Tata Group is likely to submit a bid for Cadbury Schweppes''s Snapple range of beverages.

The Economic Times reported today that The Tata Group was in talks with private equity funds Blackstone and Lion Capital to join them as a minor partner in the acquisition of the popular juice brand.

According to the report, the Tata Group is not interested in the entire beverages portfolio of Cadbury Schweppes, and wants the right to carve out Snapple if the Blackstone consortium emerges successful in its bid, the paper said.

The Tata Group''s "financial exposure in the deal is estimated to be just over $2 billion," it said.

Cadbury, the world''s largest confectionery company, is getting ready to separate its drinks arm, which includes Dr Pepper, 7UP, Snapple and Hawaiian Punch.

Sources have said at least two groups of private equity firms were bidding for the business and a US trade publication recently reported Coca-Cola may be interested in buying Snapple.

Snapple, which sells flavoured teas, lemonades and juice drinks, was the third-largest US bottled tea brand in the first quarter.

Tata Goup company Tata Tea, the world''s second-largest branded tea firm, sold its 30-per cent holding in vitaminwater maker Glaceau to Coca-Cola for about $1.2 billion in May, nearly double what it paid last year for the stake.

A senior company official said at that time it was looking for "a beverage target in the US".

Tata Tea declined comment on the report.

Tata Tea, which is looking to expand its non-tea portfolio, recently bought a controlling stake in an Indian bottled water brand, besides herbal and fruit tea brands in the United States and Eastern Europe.

 search domain-b
Tata eyeing Cadbury`s Snapple