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China's Antitrust Law and the Coke deal

• J. M.
  Sep 05 2008, 08:01 AM
  The WSJ has published an interesting article about how China is expected to handle the new antritrust laws:
  
  "Coca-Cola Co.'s $2.4 billion deal to acquire China Huiyuan Juice Group Ltd. offers the first major test of China's new antitrust law -- one that comes amid public concern over the loss of national brands."
  
  "The Ministry of Commerce, which oversees the application of the antimonopoly law, will define the market. Mr. Liu said the ministry's antitrust office hasn't been staffed yet..."
  
  "In addition, Beijing regulators will consider more esoteric issues, such as whether Huiyuan's position as a nationally famous brand -- a status granted by the government -- would be affected..."
  
  "As with past cross-border deals, government leaders will ultimately determine whether a deal goes through. They may face public pressure to keep a domestic brand in local hands. Gauging public sentiment in China is difficult, but according to an online poll conducted by Chinese Web site Sina.com, 82% of more than 40,000 respondents oppose Coke's purchase of Huiyuan."
  
  http://online.wsj.com/article/SB122055390903900663.html?mod=...
  
  Looking forward to reading your comments!

  [Edited Sep 05 2008]

  
  
• J. M.
  Mar 19 2009, 06:57 AM
  Bad news for foreign investments in China:
  
  Yesterday, Chinese authorities have rejected Coca-Cola’s $2.3 billion bid to buy China Huiyuan Juice. This is the first denial of an acquisition under the new Chinese anti-monopoly laws:
  http://www.bloomberg.com/apps/news?pid=20601087&sid=a0vVDxSX...
  
  In a poll, more than 80 per cent of 120,000 Chinese respondents "strongly agreed" with the rejection. Do you think WilmerHale lawyer Lester Ross (http://online.wsj.com/article/SB123742376981279233.html?) is right, that this decision was "driven by protectionism, fueled by popular resentment against a foreign company acquiring a popular Chinese brand."?

  [Edited Mar 19 2009]

  
  

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