China, Coca-Cola Deal Blocked Under Chinese Monopoly Law

China, Coca-Cola Deal Blocked Under Chinese Monopoly Law

www.huffingtonpost.com

March 18 (Bloomberg) -- China's rejection of Coca-Cola Co.'s $2.3 billion bid to buy China Huiyuan Juice Group Ltd. is the first denial of an acquisition under an anti-monopoly law that's been criticized since inception for a lack of openness.

The Ministry of Commerce, which said today it rejected Coca- Cola's acquisition as the deal would harm competition in the domestic beverage market, should publicly disclose how it reached that conclusion, said Guan Anping, a former Chinese trade official, who's also taught anti-monopoly law at Beijing's Capital University of Economics and Business.

(visit the link for the full news article)


Related News Links:
www.chinabusinessreview.com
afp.google.com

I am really not sure to make of this. While we have some of our own laws, regarding monopolies. On a knee jerk level, it seems unfair that China of all countries is rejecting one of OUR businesses to come in.

Considering how much we import from their country.

Apparently Coke has a long history with China as they were the first foreign investor in China. So it is not like a new upstart coming in. They have had a long relationship. I wonder what the reason is for rejecting this buyout.

Was this law designed specifically to keep Coke out?

Your thoughts?

www.huffingtonpost.com
(visit the link for the full news article)

reply to post by nixie_nox

Coca-Cola is my number one refreshing beverage of choice. I would LOVE to work for their organization.. my loyalty would be unquestionable

Oh well, if this so called Juice company wanna turn down the big boy's in the midst of this Economic crisis, so be it

[edit on 18/3/09 by Majorion]

Yea your right its totally unfair that China dont want its largest drinks provider aggressively taken over by Schweppes (an American company), those rats !

How dare they try and stop massive multi-national corporations from expanding their influence through China. America should stop selling them all their bad debts that would teach them !!!

reply to post by gYvMessanger


Debts have nothing to do with this deal.

Coca cola was the first company willing to invest and open a plant in China after it finally opened its doors to foreign investments.

Yet the company wants to expand in the country and they block it?

Its very simple they don't want a non Chinese company controlling the beverage market in China its nothing to do with "fair", has Schweppes made lots of money in China yep, are they going to keep making lots of money in China yep, should China have to let them take over the Chinese beverage market, ermmmmm no probably not, China isnt America they are about Chinese empowerment, theyll take bribes from American companies sure but don't expect them to roll over and play dead like other countries did.

I think that's awesome, way to stick it Coca Cola China!

No company, from domestic to foreign should own a monopoly in any market, it simply makes for bad business and gives those companies a carte blanche to do whatever they want.

Coca Cola was just looking to outsource more jobs and find more cheap earned income with the Chinese.

I am happy the government blocked their aquisition, it's not their place to be in.

Good job China, never knew a communist ideal could help crush a little bit of Corporate America's soul

~Keeper

You would think that America would enforce its anti-trust laws the was China does.

In this one and probably only time, I applaud you China for doing something right. Now just let your people have freedom of speech, religion, press, and to assemble. You know the basic human rights we enjoy and I say good job.

Good decision China made IMO.
If they accepted Coca Cola's deal, then I'm sure Pepsi and fast food corporations etc. would want a piece of the pie.

It's a good decision for China.

All countries should take their cue and protect local companies and locally made products.

According to one news story I heard about this the prospective takeover target already has about 42% of the market in China. To add Coke's power to that would really seem to fit the definition of a monopoly pretty well. If Coke were to try to take over Pepsi here I imagine it would raise a few eyebrows too. There is much to be said for not having any one company become too big. Smaller companies are better for the economy anyway - they're more innovative and flexible. There seems to me to be no advantage to anyone but the corporate execs themselves for any company to be so large.

Why the bickering? It's China - let them decide what's right for their own country. Other countries do this with American companies all the time.