Soft drink and snack giant Coca-Cola (KO) has boosted its stake in Keurig Green Mountain (GMCR). GMCR stock jumped almost 10% in Tuesday morning trading on the news.
KO purchased a 16.7 million GMCR shares for $1.25 billion back in February, about a 10% stake in the company. It has now boosted that stake to 16% and now controls 26 million GMCR shares, Bloomberg notes.
The investment has raised speculation that GMCR could be a takeover target for KO, which is looking to diversify its business as soft drink sales decline.
GMCR and KO are collaborating to develop a single-cup brewer dubbed Keurig Cold, expected to reach consumers later this year.
On Monday, GMCR stock closed at $110.71 per share. KO stock climbed almost 1% in Tuesday morning trading.
More Green Mountain Keurig News:
- GMCR: Keurig Green Mountain Climbs Higher on Earnings News
- GMCR Stock: Why Now’s a Good Time to Own
- GMCR: Keurig Green Mountain to Join S&P 500
