Saturday, March 21, 2009

China Rejects Coke Bid to Buy Major Juice Maker

China's Ministry of Commerce announced on March 18th it has rejected a bid by Coca-Cola to acquire China's top juice maker Huiyuan, saying the takeover could stifle competition and harm the growth of small juice makers in China. The ministry says it rejected the 2.4 billion US dollar bid in accordance with China's Anti-Monopoly Law. This is the first offer rejected since China's Anti-Monopoly Law took effect last August. Let's see Media opinions on this.

In a commentary in the 'QiLu Evening News', Tian Yu says Ministry of Commerce's decision on the case reflects the legislative intent of the Ant-Monopoly Law, saying that is to keep fair competition in the market, and protect consumers' rights and interests.

'Xian Evening News' has published a review by Li Xiaoliang, saying it wouldn't be as bad as people imagine if Coca-Cola's mergers and acquisitions succeed, and there might be many benefits instead. The review says the trend of juice maker Huiyuan declining is not avoidable if there is no fundamental change of private enterprises' development in China.

An article in the 'Nanfang Daily' says the implementation details of China's Anti-Monopoly Law still needs to be more clarified although it has successfully stopped the mergers and acquisitions this time. The author says, in the globalization process, Hui Yuan acquisitions is not the first acquisitions case, and nor would this be the last one.

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