A Canadian firm that manufactures in-house soft drinks for leading supermarkets is reportedly in talks to merge with Cadbury Schweppes.
The Wall Street Journal today reported that Cott Corps, which produces private label drinks for Wal-Mart, valued Cadbury Schweppes at £8 billion.
Quoting a source close to the talks, the US paper claimed that the usual private equity suspects, namely Blackstone Group, Kohlberg Kravis Roberts and CVC Capital Partners to name but a few, were being sounded out for possible involvement.
If Toronto-based Cott's proposed private equity-facilitated takeover goes ahead, a rival to the world's two largest soft drink companies, Coca Cola and PepsiCo, would be created.
Cadbury Schweppes is the owner of the Dr Pepper and 7 Up drink brands.
The Wall Street Journal goes on to claim that the firm has sent out confidentiality agreements to potential bidders and intends to release a business-plan memo by the end of next month.
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