Coca-Cola China announced plans to acquire the entire stake in cash of Xiamen Culiangwang Beverage Technology Co Ltd, a Chinese plant-based protein drinks maker.
The transaction is valued at about USD400 million.
Headquartered in Xiamen, Fujian province, Xiamen Culiangwang is a subsidiary of Hong Kong-listed China Culiangwang Beverages Holdings Ltd. The company's top-selling products are plant-based protein drinks, which have various flavors such as green bean, red bean, and walnut.
Coca-Cola China stated in its report that the acquisition is in line with the company's development strategy, which is to provide diversified beverage products to Chinese consumers. At present, Coca-Cola offers over 50 flavors of beverage choices under 15 brands in China, covering soft drinks, juices, tea, drinking water and coffee. Xiamen Culiangwang's products will supplement the current portfolio of Coca-Cola.
The transaction is subject to the review and approval of relevant government authorities.