Monster Beverage Said to Explore Deal With Constellation

Monster Beverage Corp is discussing a merger with international beverage alcohol company Constellation Brands Inc (STZ.N).The structure of a potential deal involving the companies, which have a combined market value of nearly $92 billion, was not immediately known

The news first reported the plans on Sunday, said  has discussed a potential deal with advisers, citing people who requested not to be identified. Monster Beverage Corp did not immediately respond to a Reuters request for comment. Constellation Brands told Reuters it does not respond to rumors or speculation.

As of Friday, the market capitalization of Monster Beverage was $47.3 billion while the market capitalization of Constellation Brands was $44.2 billion. The Constellation Brands has a diverse portfolio which includes brands like Corona Extra, Modelo Especial, Kim Crawford as well as SVEDKA vodka and High West Whiskey in the United States.Monster Beverage Corp, which has Coca-Cola (KO.N) as a major shareholder, develops and markets energy drinks brands like Monster Energy, Burn Energy Drink and Full Throttle Energy Drink.

The company had reported increased net sales two weeks ago despite the pandemic although it still experienced supply chain challenges, shortages of shipping containers, freight inefficiencies in the United States and Europe, Middle East and Africa region.Coca-Cola agreed earlier this month to buy the remaining stake in BodyArmor it did not already own for $5.6 billion