Coke Deal to Test China’s Antitrust Law
From the Wall Street Journal:
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.
How Beijing’s regulators handle the case could offer a clue as to whether the law will remove a layer of murkiness from China’s deal landscape or add another one. 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.
Read also Coca-Cola deal major test for China’s new anti-monopoly law by AFP.