The Russian government's commission for foreign investment has approved a deal allowing Coca-Cola to take over leading Russian juice producer Nidan Juices, Russia's Antimonopoly Service head said late on Wednesday.
"We have approved the Coca-Cola deal. Coca-Cola will buy 100 percent of Russia's famous Nidan Juices via European Refreshments, its European structure," Igor Artemyev said.
Coca-Cola is planning large-scale investment in the Russian juice maker, he said, but declined to specify the sum.
"So far, we cannot determine the exact sum as a business plan is currently under discussion and they have not officially announced the amount. But it is well known that Coca-Cola always modernizes production in its own way after acquisitions and always builds something new. I am unprepared to give an estimate for the sum of the deal right now but perhaps, hundreds of millions of U.S. dollars will be invested," Artemyev said.
In March 2010, Coca-Cola submitted an application to buy 75 percent of Nidan Juices shares from Britain's Lion Capital.
Nidan Juices controls 16.9 percent of the Russian juice market. The company's key brands include Moya Semya, Caprice, Caprice Tea, Sokos, Da!, Champion. In 2007, Lion Capital bought 75 percent of the company's shares from the company's founders Igor Shilov, Leonid Shaiman and Chaba Balyer, who retained 25 percent of the stock.
Coca-Cola owns Russian juice maker Multon, which produces juice brands such as Dobry and Rich.
MOSCOW, August 5 (RIA Novosti)
