Coke’s juicy M&A plans have already been raked over in the press (and on this blog ). But next it is likely to be raked over by Chinese anti-monopoly officials (amongst others). As AP reports:
“Coca-Cola’s $2.5 billion offer…for China Huiyuan Juice Group Ltd. already has stirred nationalist opposition. Comments posted on Chinese Web sites criticized the sale as the loss of a leading company to foreign owners.
The anti-monopoly law, which took effect Aug. 1, was welcomed by foreign business groups as a step toward clarifying commercial conditions in China. But Beijing has released no details of what companies must do to comply.
….”This acquisition is a very big one. So when we receive the [M&A] application, we will inspect it carefully in accordance with the Anti-Monopoly Law,” a ministry spokesman, Yao Shenhong, was quoted as saying.
…Mergers must undergo an anti-monopoly review if the company created by the deal would have revenues of 400 million yuan ($58 million) in China or 10 billion yuan ($1.3 billion) worldwide, according to a government notice Aug. 3.
The law says mergers will be blocked if they hurt competition but gives no indication of what level of market dominance is deemed unacceptable.
Regulators have 30 days to issue a ruling after receiving a formal application for a merger. But they also can decide to conduct further reviews that can extend that deadline by up to 150 days.”
This one will fizz for a while. And we will watch.
See news source:
China to review Coca Cola bid for juice maker 
The Associated Press –
BEIJING (AP) — Coca-Cola Co. will have to submit its bid to buy a Chinese juice producer for review under China’s new anti-monopoly law, state television …
Official: China to insist on principle of market-oriented economy … 
Xinhua – China
10 (Xinhua) — As Coca-Cola Co. seeks to acquire China’s largest juice company Huiyuan, a spokesman for the Ministry of Commerce said the government would …