chinese-government-cans-cokes-purchase-of-huiyuan

Chinese government cans Coke's purchase of Huiyuan

Mofcom says no to Coke's $2.4 billion purchase of Huiyuan Juice on the grounds that the acquisition will have a negative impact on competition.

The Chinese government yesterday used its anti-monopoly law to put a stop to the Coca Cola Company's proposed purchase of Huiyuan Juice. The Ministry of Commerce Mofcom said that the acquisition could cause problems for smaller companies in the drinks sector and lumber consumers with higher prices and limited choice.

If the $2.4 billion deal had been approved, it would have been the largest ever China-inbound MA transaction.

We are disappointed, but we respect Mofcom's decision, said Muhtar Kent, Coke's president and CEO, in a statement.

Matthew Crabbe, managing director of market intelligence firm Access Asia, says Coke will be frustrated that they have failed to shore up a large percentage share of...

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