Monster Beverage Corp.’s shares soared Monday following a report that Coca-Cola Co. was considering buying the energy-drink maker, but the world’s biggest soft-drink maker later denied that discussions are underway.
The Wall Street Journal cited unnamed people in reporting that Coca-Cola was in talks to buy Monster. If a deal transpired, Monster would be Coca-Cola’s largest brand acquisition ever.
Coca-Cola said late Monday that no such discussion is in process.
Monster declined to discuss the matter, citing company policy.
The companies have a distribution relationship in many markets, so they always are in some contact.
“At this time, we are not in discussions to acquire the Monster Beverage Corp. We continue to review the best ways to maximize the value of our relationship,” Coca-Cola said in a statement.
The deal didn’t seem far-fetched to investors because Coca-Cola is constantly looking beyond soda for growth and has seen some success in energy drinks.
Coca-Cola’s energy drinks include Full Throttle, Fuze, Burn and Gladiator.
Monster Beverage, based in Corona, Calif., sells juices, sodas and other drinks under brands such as Monster Energy and Hansen’s. Its net income rose 35 percent in its last fiscal year to $286.2 million.
Shares of Monster spiked early Monday to a record high of $83.96, which was 27 percent above their previous 52-week trading high of $65.94, reached last week.
The stock closed down 53 cents, however, at $65.
Shares of Coca-Cola, based in Atlanta, fell 31 cents to close at $76.32.
