Molson Coors Beverage (NYSE:TAP) has agreed to acquire an 8.5% stake in Fevertree Drinks, becoming its largest shareholder, as the Coors Light beer maker looks to expand its U.S. non-alc portfolio through a new strategic partnership,

The London-listed mixer-maker said Molson Coors would acquire an 8.5% shareholding in Fevertree.

Miller Lite brewer Molson Coors (TAP) says it will expand its U.S. soft drinks business through a strategic partnership with UK-based

By Shashwat Awasthi (Reuters) -Shares of Fevertree Drinks surged almost 24% after Molson Coors' took an 8.5% stake in the firm, in a deal giving the beer giant exclusive rights to market the British company's cocktail mixers and tonic water in the United States.

US brewing giant Molson Coors is set to acquire an 8.5% stake in Fevertree for £71m ($88.29m) in cash, as a part of a strategic partnership.

Fevertree, known for its cocktail mixers, tonic water, ginger beers, ginger ales and other lightly flavoured sodas, said it will return the proceeds to shareholders via a share buyback programme from next month.

Fever-Tree Drinks said it reached a long-term partnership with Molson Coors to boost growth in the U.S. and that it would launch a share buyback. The London-listed mixer-maker on Thursday said Molson Coors would acquire an 8.