Source: CCTV.com

09-22-2008 10:15

Soft drinks giant Coca-Cola has begun applications for an anti-monopoly review following a deal to buy out China's Huiyuan Juice.

Soft drinks giant Coca-Cola has begun applications for an anti-monopoly review following a deal to buy out China's Huiyuan Juice. 
Soft drinks giant Coca-Cola has begun applications for an
anti-monopoly review following a deal to buy out China's 
Huiyuan Juice.
 

Coca-Cola hopes to acquire Huiyuan for 18 billion Hong Kong dollars, in what could be the largest foreign takeover in Asia. But it still needs to clear just the one regulatory hurdle. And that's the recently enacted Anti-Monopoly Law. With the law taking effect in August, all foreign acquisitions of Hong Kong-listed mainland firms must now undergo a so-called "anti-monopoly review".

Essentially, the review determines when to block a proposed take-over. For example, if the combined sales of both companies exceed 10 billion yuan on global markets, and 400 million yuan on domestic markets.

The Ministry of Commerce is set to announce the result within 30 days. Coca-Cola has already said that if the bid is approved, it plans to continue using the Huiyuan name and keep the brand intact.

 

Editor:Xiong Qu