The juice market in China is expected to see double digit growth this year and Coca-Cola, the world largest soft drinks maker, is hoping to ride that wave by offering $2.4 billion to buy the country's market leader, Huiyuan Juice Group, according to Bloomberg.
People in China seem to prefer the healthier fruit and vegetable juices over the carbonated drinks.
Huiyuan is the leader with 10.3 percent share of the juice market while Coca-Cola, through its Minute Maid brand, has 9.7 percent. Pepsi, on the other hand, has less than 1 percent of the market.
The deal will have to be approved by the Chinese government, and Coca-Cola may have some difficulties there, according to Xinhua.
Mei Xinyu, a researcher under the Ministry of Commerce, says there are two main issues the can get in the way of the acquisition.
"There are two main difficulties. One is the large size of the two companies, which will raise concerns about monopolies. The second is that the brand of Huiyuan is considered to be protected as a famous domestic brand," Mei told Xinhua.