It was reported today by the Wall Street Journal that Coca-Cola is considering buying energy drink maker Monster Beverage Corp. On news that Coca-Cola was looking into the acquisition, Monster’s stock went up 11% pushing Monster’s market value to $11 billion. If Coca-Cola pulled this off it would be the largest ever acquisition for the world largest beverage maker.
When asked about the possible purchase, a Monster spokesperson said, “it is the company’s policy not to comment on rumors.”
This is not the first time in the last few years that rumors have circulated regarding Coca-Cola’s acquisition of Monster, due to the fact that Coca-Cola distributes the energy drink.
The purchase of Monster by Coca-Cola would prove to be difficult because of the price tag attached. At $11 billion, any company in America would be hard pressed to come up with that kind of cash.
After trading for the day had ended, Coca-Cola was asked about a possible take over of Monster and this is what they had to say: “We are not in discussions to acquire the Monster Beverage Corporation.” They will consider a partnership but are not trying to acquire them.
Update: Coca-Cola says it’s not in talks to buy Monster Beverage. $20 gain in $MNST shares evaporates.
Coca Cola says it’s not in discussions to buy Monster Beverage, blames “Assy” taste.