News

CHINA: Coca-Cola Co. Huiyuan buy gets authorities' cold shoulder

Most popular

Hard seltzers pave the way for 'soft seltzer'?

What will Coca-Cola Co's priorities be? - analysis

The rise of adaptogens in soft drinks

The Coca-Cola Co Performance Trends 2016-20 - data

Constellation Brands in fiscal-2021 - preview

MORE

The Coca-Cola Co. has seen its bid to buy China's Huiyuan Juice Group turned down by the country's Ministry of Commerce.

In a statement earlier today (18 March), the Ministry said it has rejected Coca-Cola's US$2.4bn takeover offer for Huiyuan, on the grounds that it would have "an unfavourable impact on competition" in China.

Hong Kong-based Huiyuan has a 40% share of the Chinese juice market.

"Coca-Cola may have been able to use its dominant status in the (Chinese) CSD market to use bundling and tie-ins of juice beverage sales or to set other exclusionary transactional terms, with the concentration restricting market competition in the juice beverage market," the Ministry said.

The statement noted that Coca-Cola had moved to address the Ministry's reservations over the purchase, but "after evaluation, the Ministry of Commerce believes this revised proposal still could not effectively reduce the negative impact on competition of this concentration.

"Therefore, based on Article 28 of the Anti-Monopoly Law, the Ministry of Commerce has made the decision to forbid the deal."

No-one was immediately available for comment at Coca-Cola as just-drinks went to press.

Had the transaction been approved, the purchase would have been one of the largest foreign takeovers in China's history. Analysts had viewed the bid as a test case for China's new Anti-Monopoly Law, with the decision expected to act as a litmus test for China's policy on foreign takeovers.


Related Content

Drinks e-commerce at

Drinks e-commerce at "inflection point" - The Coca-Cola Co...

Tariffs risk reversing Australian wine's hard-won China wins - comment

Tariffs risk reversing Australian wine's hard-won China wins - comment...

The Coca-Cola Co to cut staff numbers globally in company overhaul

The Coca-Cola Co to cut staff numbers globally in company overhaul...

"Was Coca-Cola the right company to buy Zico? In hindsight, probably not" - just-drinks speaks to Zi...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?