China Denies Protectionism In Coca-Cola Ruling

[Coventina]

Source: CNN

BEIJING -(Dow Jones)- China dismissed criticism that its rejection of Coca- Cola Co.'s (KO) bid for China Huiyuan Juice Group Ltd. (1886.HK) was a protectionist move, saying Thursday the decision was consistent with its antimonopoly law and the country remains open to foreign investment.

The Ministry of Commerce said Wednesday it had ruled against Coca-Cola's purchase of Huiyuan for US$2.4 billion because the deal would unduly restrict competition.

The ruling, the first big test of China's antimonopoly law that took effect in August, could discourage foreign investment and undermine Beijing's calls against protectionism in global markets.

The Foreign Ministry and the Commerce Ministry said Thursday the decision on Coca-Cola's bid was "objective" and intended to maintain "fair competition" in the market.



Read more: http://money.cnn.com/news/newsfeeds/articles/djf500/200903190628DOWJONESDJONLINE000511_FORTUNE5.htm

---

IMO - I'm glad the deal didn't go down.

[Vidar]

1. Good to know somebody enforces an antimonopoly law.