Tata Tea turns down Cadbury's offer

Tata Tea on Monday said it has declined Cadbury's offer to acquire its global beverage business.

"We have received the offer to acquire Cadbury's global beverage business through a strategic investor, but we have declined the offer," Tata Tea's Managing Director Percy T Siganporia said on the sidelines of a press conference here.

"We have no involvement with Cadbury's global beverage business," Siganporia added.

With this, Siganporia has quelled speculation that Tata Tea, the world's second-biggest branded tea firm, may acquire Cadbury Schweppes's North American soft drinks unit.

Cadbury had said in March that it would sell or spin off its North American soft drinks unit, which makes Dr Pepper and 7 Up soda.

Tata Tea has been looking at acquiring more beverage brands to tap growing consumer demand for health drinks and grow into one of the world's biggest beverages companies.

Tata Tea, which acquired Britain's Tetley for $432 million in 2000, has been expanding its overseas presence ever since.

The company also bought herbal and fruit tea brands in the US and eastern Europe to boost its global presence and plans to launch the same in India shortly. Tata Tea also sold its 30 per cent stake in the US vitamin water maker Glaceau to Coca-Cola for $1.2 billion.