(Boursier.com) — Constellation Brands and monster drink reportedly made progress in their merger talks, Bloomberg reports. Citing people familiar with the matter, the agency explained that a merger agreement could be reached in the coming weeks, if negotiations continue to go well. Companies of similar size would together have a market value of around $90 billion. Monster, which counts Coca-Cola Co. among its main shareholders, is a Californian company based in Corona, specializing in energy drinks. Constellation, a group based in Victor, New York, specializes in alcoholic beverages. The new set would therefore be more diverse, with a unique combination of energy drinks, alcoholic beverages and potentially marijuana, but the opportunities for cost synergies appear limited.
Bloomberg warns, however, that the agreement could take longer to materialize, or even fail. The exact structure of the transaction under discussion could not be known at this time.
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