Coke faces hurdle expanding into China market
China’s Ministry of Commerce said Wednesday it has rejected a proposal by Coca-Cola Co. (KO) to take over China Huiyuan Juice Group Ltd. (1886.HK), because the deal could hurt competition in the local market.
The planned takeover has attracted wide attention for the light it sheds on Beijing’s stance toward overseas acquisitions of famous local brands.
The proposed deal could “restrict competition in the juice drinks market, force consumers to accept products with higher prices and reduce the types of products available,” the ministry said in a statement.
Kenth Kaerhoeg, group communications director for Coca-Cola Pacific Group, told Dow Jones Newswires Coca-Cola couldn’t immediately comment on the ministry’s decision.
The ministry said it made its decision after hearing opinions from all parties and also after Coca-Cola submitted an amendment to its original proposal based on the ministry’s requirement.
The decision came after the ministry began reviewing the deal in November. – Dow Jones