Coke spends on technology and infrastructure in China

The Coca-Cola Company opened a $90 million innovation and technology centre in Shanghai on Friday. The company also announced that it will pump a further $2 billion into China over the next three years. The news comes just weeks before the deadline for the completion of Coke's proposed takeover of domestic drinks company Huiyuan Juice.

The new research centre, Coke's largest in Asia, will look at developing new products suitable for Chinese tastes -- where drinks like juices and teas are preferred over Coke's traditional mainstay, carbonated beverages.

The $2 billion of further investment will be spent on new plants and distribution infrastructure, sales and marketing, and research and development. The investment announced is greater than all the money the US drinks giant has put into China since it returned to the country in 1979, estimated at $1.6 billion.

The timing of the announcement is likely to be linked to the imminent deadline for Coke's takeover of Huiyuan Juice, which is due for completion on March 23. In September, Coke revealed a $2.4 billion offer for control of Huiyuan and has since been waiting for regulatory approval under China's new anti-monopoly law. The regulator's decision is critical because it will signal China's attitude towards inbound M&A deals.