IE Business Daily Business news for the Inland Empire.
Coca-Cola will buy a 16.7 percent interest in Corona-based Monster Beverage.
The world’s largest soda manufacturer and distributor will pay $2.15 billion for its percentage of the company and will place two people on Monster Beverage’s board of directors, according to an Associated Press report.
The transaction was announced Thursday. It is expected to close late this year or early 2015.
Atlanta-based Coca-Cola is looking to cash in on the popularity of energy drinks, of which Monster Beverage is a leading brand. Coca-Cola’s flagship soda business is currently struggling in a number of markets, including the United States.
Coca-Cola has an option to increase its ownership stake to 25 percent, according to the report.
Energy drinks have grown dramatically in popularity in recent years, but their safety has also been questioned. The U.S. Food and Drug Administration has investigated possible deaths linked to energy drinks but has been unable to prove a connection in any case.
Monster Beverage maintains that its drinks are safe.
