Weeks after acquiring U.K. coffee chain Costa Coffee for 3.9 billion pounds, the Coca-Cola Co. is all set to bid for GlaxoSmithKline Plc’s Horlicks Ltd, the Sunday Telegraph reported.
According to the newspaper, the U.S. drink giant is expected to reveal its interest ahead of a deadline for first round of bidding. The newspaper previously reported that the transaction may be valued at 3 billion pounds.
Coca-Cola is attempting to diversify its soft drinks empire as shoppers in some countries shift away from fizzy drinks amid concerns over their sugar content.
The decision comes after GSK’s announcement of launching a strategic review of its Horlicks business in India and a string of nutritional products, the Telegraph reported.
On the other hand, companies like Kellogg Co., Unilever Plc, Reckitt Benckiser Group Plc, The Kraft Heinz Co. and Nestle SA also showed interest in Horlicks. Private equity firm KKR & Co Inc. was also among the other retail companies.