Coca-Cola Co will pay $715 million to distribute drinks from Dr Pepper Snapple Group , which had earlier reached a similar, but pricier arrangement with PepsiCo .

Dr Pepper Snapple, which already had distribution agreements with Coca-Cola Enterprises , will receive a one-time cash payment from Coke, letting the world's largest soft-drink company take over existing arrangements from the bottler it is acquiring.

After completing the buyout of its top North American bottler, Coke will distribute Dr Pepper trademark brands in the United States, as well as Canada Dry in the Northeastern part of the country, where they are currently distributed by CCE. It will distribute Canada Dry, C'Plus and Schweppes in Canada.

Earlier in the year, Dr Pepper Snapple received a $900 million payout from PepsiCo, which had previously acquired two of its biggest bottlers.

The new deal with Coke runs 20 years and includes an option to renew for an additional 20 years.

This agreement aligns with our 2020 vision of more than doubling our system revenue while increasing our system margins by leveraging the world's most powerful distribution network, Coke Chief Executive Officer Muhtar Kent said in a statement.

Dr Pepper shares were down 0.9 percent at $36.15 in morning New York Stock Exchange trading, while Coke was unchanged at $51.27.

(Reporting by Nivedita Bhattacharjee; Editing by Lisa Von Ahn)