Monster has agreed to buy rival Bang Energy for $362 Million.

Bang Energy, owned by Vital Pharmaceuticals of Florida, filed for bankruptcy in October last year after Monster sued it for false advertising, and other alleged misconduct. A California jury awarded Monster $293 millions.

Monster filed the lawsuit in 2018 because Bang Energy made misleading claims about its performance drinks’ physical and mental benefits. Reuters reported that in April, the company was ordered to cease marketing drinks containing “Super Creatine.”

Monster argued that Bang Energy drinks did not contain Creatine – a substance that is used in workout supplements – and that “Super Creatine”, which was marketed as a health supplement, had no benefits. Bang Energy claimed that its “miracle beverage” could “reverse” mental retardation and cure neurological disorders.

The bankruptcy court must approve the deal announced on Monday.

The company stated Monday that “While Monster hopes that the transaction will go through, it is not guaranteed that it will receive Bankruptcy Court Approval.”

The deal is still pending review by the Federal Trade Commission. On June 22, the FTC sent a second letter to Bang Energy and Monster, asking for more information on the proposed acquisition.

Bang Energy, a company that has been around since 1993, develops performance drinks, supplements, and workout products such as Meltdown Quash Vooz Redline.

The company was embroiled in lawsuits including one by PepsiCo Inc. ,, over a distribution agreement that went sour. In bankruptcy documents the company listed a $115m settlement with PepsiCo as one of its large unsecured debts.

The Wall Street Journal reports that the legal battles have continued. The Wall Street Journal reported that in March, Bang Energy filed a lawsuit against its ousted CEO Jack Owoc for refusing to relinquish control of social media accounts such as Twitter, Instagram, and TikTok.

Analysts at JP Morgan estimate that if the deal goes through — and there are a lot of risks, including regulatory risks — it will add 1%-2% to earnings per share.

This is assuming that Vital Pharmaceuticals can improve its margins by about 15% (earnings prior to interest and taxes).

In a note sent to clients on Friday, they said: “This is our best estimate as the structure of the transaction remains uncertain and the steep downward trend of the Bang brand continues and MNST’s ultimate plan for the assets and brand.”

The acquisition of VPX assets will also include a large and state-of-the art manufacturing facility in Arizona that could be used to manufacture some of MNST’s products.

The note asked whether Monster would continue to distribute Bang Energy Drinks or stop doing so, as well as how it would manage distribution. It could either stick with its main distributor, Coca-Cola Co. , +0.60% ,, or use an independent distributor.

NielsenIQ estimates show that sales of Bang Energy have been falling rapidly. Sales through June 17 were down 54% compared to the same period last year.

Monster has also struggled in this inflationary climate. The company , which was once a high-flying firm, announced price increases as well as a stock split.

Stocks were down 0.8% on Monday, and have gained 12% for the year. This is below the S&P500 SPX +0.12% ,, which has gained 16 %.