Tata Tea gains on US acquisition buzz

As per reports, the Tata Tea is examining a number of acquisition targets in the US beverage market. Topping the list is AriZona Beverages, in which the Tatas have been interested for almost three years now.

AriZona Beverages operates a portfolio of tea, coffee, water and juice brands, besides beer and snacks. Reportedly, if a bid goes through, the Tatas will keep both the bottled and powder beverage operations and may divest the beer and snack businesses of AriZona Beverages.

Last year, Tata Group paid about $677 million for a 30% stake in Glaceau — makers of enhanced water in the US. But it was forced to sell its stake in the company to Coke after the US giant made an aggressive offer.

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