Czech Kofola says to merge with Poland's Hoop

...create a regional player listed in Warsaw, Kofola said on Tuesday.

"The result of the merger will be that shareholders of Kofola Holding... will be the majority owners of the newly created company," Kofola said in a statement.

The newly-formed company will be called Kofola-Hoop S.A., Kofola said.

Kofola has grown into a regional player through the successful re-launch of a cola-style drink, Kofola, a brand that was widely known in the Communist-era as an answer to Coca Cola and Pepsi.

The merged company will have sales of 8.6 billion crowns ($401.7 million) and will operate in the Czech Republic, Poland, Hungary, Slovakia and Russia.

The two sides will proceed to determine the exact terms of the planned merger, Kofola said.