(Bloomberg) — Monster Beverage Corp. carries a unique distinction as it negotiates a potential tie up with Constellation Brands Inc. — the title of the S&P 500’s top stock over the past two decades.

Most Read from Bloomberg

  • Asia’s Richest Man Looks to Walton Family Playbook on Succession

  • New York City Is Building a Wall of Oysters to Fend Off Floods

  • The Women Behind Historic House Designs

  • From Bathhouses to Fisheries, Hidden Inflation Is Creeping Across Japan

  • Maverick 70-Year-Old CEO Is Determined to Shake Up Japanese Finance

The maker of energy drinks has risen 107,060% over the last 20 years to Friday’s close, with most of the gains coming in the first decade of the century. In the last 10 years, Constellation’s returns have been more than double those of Monster, which counts Coca-Cola Co. as a major shareholder. Monster has a market value of about $48 billion, and Constellation Brands, which makes Corona, is worth about $44 billion.

Monster discussed a potential deal with advisers, but considerations may not lead to a transaction, Bloomberg has reported. The exact structure of a potential tie-up couldn’t be immediately learned and it’s unclear whether discussions will lead to a full merger or asset deal.

Monster, which changed its name from Hansen Natural Corp. and ticker from HANS in Jan. 2012, gained 0.9% Monday, while Constellation fell 0.5%.

The report that they’re talking about a deal is “likely to come as a big surprise to investors,” Jefferies analyst Kevin Grundy wrote in a note, while Goldman Sachs analyst Bonnie Herzog wrote that the talks “are unexpected, given the limited strategic rationale of a combination between the two companies.”

(Updated in fourth paragraph with Monday’s trading)

Most Read from Bloomberg Businessweek

  • Wildfires Are Getting Worse, and One Chemical Company Is Reaping the Benefits

  • Medical Debt Is Crushing Black Americans, and Hospitals Aren’t Helping

  • How Child Care Became the Most Broken Business in America

  • Boeing Built an Unsafe Plane, and Blamed the Pilots When It Crashed

©2021 Bloomberg L.P.

(305) 707 0888