Atlanta: Coca-Cola Co, the world's biggest soda maker, is in talks to buy the North American operations of bottler Coca-Cola Enterprises Inc for almost $15 billion (Dh55.17 billion) including debt, according to two people with knowledge of the discussions.
The sides may reach an agreement within days or the talks may fall apart, said the people, who declined to be identified because the talks are private.
In the transaction under discussion, Coca-Cola would sell bottling operations in Scandinavia and Germany to Coca-Cola Enterprises, its largest bottler, the people said.
Coca-Cola Enterprises soared 27 per cent in extended trading. The shares climbed $5.17 to $24.35 at 7:36 p.m. New York time.
Ben Deutsch, a Coca-Cola spokesman, didn't immediately return a call seeking comment. John Downs, a spokesman for Coca- Cola Enterprises, declined to comment.
Coca-Cola and PepsiCo Inc sell beverage concentrate and syrup to licensed bottlers, which add water and other ingredients, put the mixture in bottles and cans, and sell it. In 1999, PepsiCo followed Coca-Cola's lead by spinning off its capital-intensive bottling operations to create Pepsi Bottling.
PepsiCo, the second-largest soft-drink maker, agreed in August to take control of its two biggest bottlers for about $7.8 billion, allowing the soda maker to save money by bundling snacks and drinks.
PepsiCo's takeovers of its bottlers will give it control of about 80 per cent of its North American beverage market. The acquisitions are expected to be completed by the end of the first quarter, PepsiCo, based in Purchase, New York, said in a regulatory filing on January 11.
Coca-Cola, based in Atlanta, rose 33 cents to $55.16 on Wednesday in New York Stock Exchange composite trading. The stock rose 26 per cent last year, while PepsiCo advanced 11 per cent.
