Tata Tea in talks to buy UK`s Liberty Tea, says report

24 September 2007

Mumbai: Tata Tea Ltd, the world''s second-biggest branded tea firm, is in talks with UK-based speciality tea firm Liberty Tea to expand its share of the global beverages market, reports quoting group sources said.

Reports said discussions are at an initial stage and Tata Tea was still examining the synergies that an acquisition could bring.

Tata Tea, which acquired Britain`s Tetley for $432 million in 2000, has been expanding its overseas presence ever since. The company also bought herbal and fruit tea brands in the US and eastern Europe to boost its presence.

Tata Tea, which sold its 30 per cent stake in US vitamin water maker Glaceau to Coca-Cola Co for $1.2 billion, said in June it would buy almost 26 per cent of Mount Everest Mineral Water Ltd and make an open offer for another 20 per cent in a deal it said was worth up to $52.8 million.

Tata Tea, which currently makes most of its revenues from tea, is looking to diversify into other segments of the beverages business globally as the consumption of black tea has declined over the past few years.

The move is part of Tata Tea''s long-term plan of expanding global footprint and fortifying presence in other segments of the hot drinks market. Tata Tea is looking to grow in other segments through the inorganic route.