In a deal that joins the world’s biggest soda company with the world’s biggest energy drink company, Coke has bought a 16.7% stake in Monster Beverage for $2.15 billion. According to the deal Coke may increase its stake in Monster up to 25% through open market purchase or through a negotiated deal with Monster, but is prohibited from increasing its stake beyond 25% without approval. Under the deal, Coke will also transfer all of its energy drink brands to Monster and Monster will in turn transfer its non-energy drink brands to Coke. The two companies will also collaborate on global expansion and distribution. This is the second time that Coke has tried to buy into Monster within the past two years as it looks to diversify beyond carbonated soft drinks which saw sales fall by 3% last year according to Beverage Digest. Toward this end, in January 2014 Coke also acquired a 10% stake in Keurig Green Mountain coffee company for $1.25 billion which it later increased to 16%.
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