Coca-Cola's offer for Chinese firm faces anti-monopoly probe

Sep 8, 2008, 10:50 GMT

Beijing - US-based soft-drink giant Coca-Cola's offer to buy the leading Chinese fruit juice firm faces an anti-monopoly review, state media said on Monday.

China Central Television (CCTV) quoted Commerce Ministry spokesman Yao Shenhong as saying officials were still awaiting the formal application by Coca-Cola following its announcement last week that it had offered 2.4 billion dollars to buy China's Huiyuan Juice Group.

'Since the takeover involves a large sum, if the application is sent to the Commerce Ministry we will investigate it according to the anti-monopoly act,' Yao said on the CCTV website.

Coca-Cola said in a statement that it offered 12.20 Hong Kong dollars (1.56 US dollars) per share for Hong Kong-listed Huiyuan, or triple Huiyuan's previous closing price of 4.14 Hong Kong dollars.

The takeover is subject to approval by Chinese regulators.

Huiyuan brands accounted for 46 per cent of packaged fruit juice sales in China in 2007, the official China Daily newspaper reported earlier this year.

The Chinese firm also exports to countries including the United States and Japan, and last year it won a 100-million-dollar contract to supply fruit juice for Wal-Mart's 3,000-plus US stores, the newspaper said.

Coca-Cola is the world's largest soft-drink firm with more than 450 brands. Huiyuan is the biggest fruit and vegetable juice company in China.