China Huiyan Juice Group's Share Jumps To $1.41 On News Of Coca Cola Bid

Hong Kong (AHN) - Coca-Cola Company announced Wednesday it made a bid to purchase for $2.5 billion the China Huiyuan Juice Group, the country's largest juice manufacturer.

With Coca Cola's offer to purchase Huiyuan, the juice maker's stock almost tripled to $1.41 (11 Hong Kong dollar) from $0.51 (4 Hong Kong dollar). It was publicly listed in Hong Kong in 2007, but Huiyuan's shares dipped sharply in 2007, along with other Chinese and Hong Kong stocks.

If the deal will push through it will be one of the largest foreign buyout of a Chinese firm as part of Coke's plan to further expand operations in China.

Huiyuan, based in Beijing, enjoyed a sales of $380 million in 2007. It was established in 1992 and in 16 years has enjoying booming sales in China, accounting for 46 percent of the juice market. Its 31 facilities across the country manufacture orange, apple and pear juices. Huiyuan's juices are also exported to the U.S. and Japan.

Coca-Cola chief executive officer Muhtar Kent said, "This acquisition will deliver value to our shareholders and provide a unique opportunity to strengthen our business in China."