Coca-Cola Co has offered to pay $2.3 billion for China Huiyuan Juice Group in a bid to become the largest juice manufacturing company in one of the biggest markets in the globe.

Coca-Cola Co is the biggest soft drink manufacturer in the world and after declining sales in North America, it is keen to expand its reach in overseas market. Coca-Cola’s acquisition of Huiyuan Juice will double its share of the juice market in China which is reported to be extremely competitive.

The $2.3 billion or $HK17.9 billion deal is the largest overseas acquisition for Coca-Cola Co which has agreed to pay $HK12.20 per share in cash. This is three times the last closing price of $HK 4.14 per share. The news of the deal led to an upsurge in the share prices of Huiyuan Juice Group which shot up by 167% to $HK11.06 on Wednesday morning at Hong Kong.

Beijing-based Huiyuan Juice Group is the biggest fruit and vegetable juice company in China on the basis of its 10.3% market share. Coca-Cola comes at second place with a market share of 9.7%. The deal will enable Coca-Cola to make greater savings on raw materials like fruit and packaging and this in turn will allow it to diversify into other beverages.