Just ahead of the holiday close, Monster Beverage Corporation (NASDAQ:MNST) pulled off a feat that some thought might not happen. It managed to buy nearly all of Bang Energy’s assets following Bang’s ultimate bankruptcy. Nonetheless, the move didn’t quite sit well with investors, and Monster ended up down fractionally going into the early close.
It was a move challenged by the Federal Trade Commission (FTC), which questioned whether there would be sufficient competition left in the energy drink market should Monster—already a major name in and of itself—buy up the last of Bang Energy.
Such concerns weren’t too hard to countenance. While there’s certainly no shortage of energy drinks on the shelves, Monster was already just a hair ahead of its primary competitor, Red Bull. Monster held 37% of the market, while Red Bull had 35%. The rest of the market was divvied up among other competitors, including Celsius Holdings (NASDAQ:CELH) with 7% of the market and PepsiCo (NASDAQ:PEP) with 5%.
Those concerns apparently didn’t last long because the deal has largely gone through. Monster Beverage will land, among other things, Bang Energy’s production facilities in Phoenix, Arizona. It will be subject to a set of terms and conditions, of course—among them the approval of a bankruptcy court—but the move seems to be already in play.
Bang Energy had a rough time of things from its early days, having lost a lawsuit to Monster last October to the tune of $293 million and also being required to stop marketing drinks containing a largely-unheard-of substance called “Super Creatine.”
MNST stock, meanwhile, continues to impress analysts. With 11 Buy ratings and five Holds, Monster Beverage stock is considered a Moderate Buy. Further, with an average price target of $61.50, Monster Beverage stock also offers its investors 8.01% upside potential.