Boston, MA 04/28/2014 (wallstreetpr) – Starbucks Corporation (NASDAQ:SBUX), one of the most renowned coffee brands of the world is in advanced talks with Soda Stream International Ltd. (NASDAQ:SODA) to take on its rivals Coca Cola (NYSE:KO) and Keurig Green Mountain Inc (NASDAQ:GMCR). This news caught eyes of everyone recently.
Starbucks is planning to acquire 10% stake of Soda Stream International. The company has market capital of $850 million, so this deal will take Soda Stream International’s net worth to more than $1.1 billion. This offer from Starbucks Corporation seems to add up 30% premium in Soda Stream International Ltd’s overall market cap.
Coca Cola and Green Mountain Inc:
Previously Coca Cola joined hands together with Green Mountain Inc in a deal valued over $1.25 billion. This decision came at a time when Coca Cola (NYSE:KO) was struggling with in the U.S. market. Acquiring Green Mountain Inc allowed Coca Cola to experiment with a larger customer base in the same market and helped it in exploring newer opportunities.
Where will this lead to both the companies?
This is one of the most important questions to be asked. At a time when Starbucks is facing heavy market competition in the market from its rivals, this deal can be a game changer. At the same time, Soda Stream International Ltd. needs a platform which can help it growing its market base. Starbucks Corporation (NASDAQ:SBUX) has a well established network in the U.S., and; therefore, this deal can take Soda Stream from 1% usage in the U.S. market to a lot higher numbers. After analyzing the situation of both the companies, market experts call it a win-win deal for Starbucks and Soda Stream International ltd. Though company has not yet made any formal announcement about the deal, but as per the reports it will be made public in a few days time.
Starbucks Corporation (NASDAQ:SBUX) is facing a stiff market competition from its competitors, so this deal matters a lot for company’s future in the U.S. beverages market.
