Coke Deal to Test China's Antitrust Law
- China
- 09/05/2008
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 new law, which took effect last month, attempts to streamline and standardize the government’s antitrust activities. Previously, no unifying law was on the books, and several agencies had a say in matters of general competition and mergers. Although Chinese officials have indicated they will lean toward international best practices, implementation rules clarifying the new law have been slow to come out. It isn’t clear whether the government agencies involved would be equipped to handle the case so soon. Antitrust officials who scrutinize deals involving Chinese companies will consider the size of the market and the combined company’s position in it.
