Coke Bids for China Juice Company at Incredible Premium

Coca Cola (KO) has bid $2.4 billion for HK-listed fruit juice company Huiyuan Juice Group, offering to pay HK$12.20 per share. Compare this to the company's previous closing price of HK$4.14 and you'll realize the amazing premium built into this deal.

This also happens to be the second largest acquisition in Coke's history and the biggest purchase of the control of a Chinese company by a foreign entity. Just goes to show how U.S. big businesses are currently viewing opportunities in China.

So when will one see an M&A transaction involving a Chinese OTC company? Probably sooner than you think.