1:39 AM | Author: Siva
are getting more attention. Coca-Cola (KO) acquired Glaceau. The news is interesting because Tata Tea and Tata Sons owned 30% of Glaceau. Tata's last August acquisition seemed really good. It didn't appear this good. A 77% profit or $523 million in absolute value. But I still feel Tata missed the opportunity to get majority stake in Glaceau. May be they didn't want to outbid Coca-Cola now. But the acquisition may have helped Tata Tea more.

While Tata would have benefited from Glaceau's presence and operations for its products, now Glaceau is going to benefit from Coca-Cola's presence. I like the former better. May be Coca-Cola has something to compete with Gatorade now. But just that won't be sufficient, no ? On that note, lot of people I know don't associate Gatorade to the Florida Gators. Why ? I don't know.
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5 comments:

On 1:01 PM , Arasan said...
This comment has been removed by the author.
 
On 1:02 PM , Arasan said...

Thats a excellent business deal.

Look an eye for 2 business rivals and there product categories. Identifying and investing on 3rd company which holds a considerable market share on specific product would be wise option. In this case its Vitamin Water & Tata Tea:)-

 
On 2:24 PM , Siva said...

That would have been a good deal for a private equity firm or a hedge fund.

But for Tata Tea they were obviously looking for something more than that return. In the strategy side it is actually a setback for Tata Tea.

The problem - They didn't have the majority stake in glaceau. As you can see from the statement of the Vice Chairman Krishna Kumar, that they will go for majority stake in future acquisitions, Tata Tea is not too happy about it.

 
On 3:52 PM , Anonymous said...

Maybe I can answer the last part .. I saw an adverstisement or something that mentioned Gatorade was created by someone from your university.

http://en.wikipedia.org/wiki/Gatorade

This link confirms that!

 
On 11:17 PM , Siva said...

yeah bals, I knew it. But lot of people don't make that gatorade to Florida Gators association.