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Coke takeover of Huiyuan may face double reviews by authorities
By Nie Peng (chinadaily.com.cn)
Updated: 2008-09-05 17:35 The Coca-Cola Company's $2.4 billion offer to buy Huiyuan Juice, one of China's major domestic juice makers, has sparked hot debates in recent days, with more than 80 percent of netizens concerned about foreign companies' takeovers of domestic brands. Industry insiders appealed to authorities to start a national security review as well as an anti-monopoly investigation to decide on the matter. But according to a report by the National Business Daily on Friday, brand takeover "was not a concern for a national security review." "The criteria for national security review are sort of vague so far, but the scope for investigations has been narrowed down to mainly such fields as military and State information security", said Ma Yu, a senior researcher with the foreign investment research institute of the Ministry of Commerce. Ren Yong of Beijing Tiandihe Law Firm thinks otherwise. "The proposed acquisition should be subject to a national security review because the takeover of Huiyuan, a famous Chinese brand, could pose a threat to State economic security," he said. As for the anti-monopoly investigation, Ma said public opinion may play a role, as it did in July when China turned down a $3.75 billion offer by US-based private equity company Carlyle Group to acquire the Xugong Group Construction Machinery Co. (For more biz stories, please visit Industries)
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