Coca-Cola to Buy China Juice Seller

The deal is worth $2.4 billion.
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Drinks maker

Coca-Cola

(KO) - Get Report

offered to buy China Huiyuan Juice Group, a Hong Kong-listed company, in a $2.4 billion deal that would expand its reach in the world's most populated nation.

Atlanta-based Coca-Cola has been operating a business in China since 1979. The company sells its namesake brand, Sprite, Fanta and other drinks, including Guo Li Chen and Yuan Ye, in China.

"Huiyuan is a long-established and successful juice brand in China and is highly complementary to the Coca-Cola China business," said Muhtar Kent, president and CEO of Coca-Cola.

Coca-Cola said the transaction would cut its earnings by 3 cents to 4 cents a share in the first full year after the acquisition is completed, but should add to its profits in the third year.

The company also said it now expects to repurchase a total of $1 billion of stock for this year.

This article was written by a staff member of TheStreet.com.