Coca-Cola acquires 16.7% of Monster energy drink, for $ 2.15 billion

SAO PAULO-the Coca-Cola Company acquired participation of 16.7% on Monster Beverage for $ 2.15 billion, a minority share. The goal is to create an industrial partnership to expand the business both in the segment of energy drinks, reported.
With the transaction, Coca-Cola will be entitled to nominate two members to the Board of Directors of Monster. In addition, the Full Throttle, Burn, Play and other, of energy, will be transferred to the Monster, while the business of juices and soft drinks are for Coca-Cola.
The operation will also give preference to buyer in the global distribution of Monster drinks. Currently, the two already have a similar agreement, but primarily in the United States and in Canada. The expectation is that the acquisition is terminated at the end of this year or the beginning of 2015.
As Coca-Cola's participation will be a minority, the results of the Monster will be recorded in its balance sheet at equity method, according to the slice that up. "The investment will allow us to expanding market share dir energetic global control efficiently," said Muhtar Kent, President of Coca-Cola.
After the announcement, shares of Monster shot the Nasdaq electronic stock exchange, pós-fechamento of New York. The papers were advancing 22.1% to $ 87,50 — major quote since 2006. Already the assets of Coca-Cola won 1.29% on Nyse, traded at $ 40.70.