China Rejects Coca-Cola Bid to Buy Huiyuan

China's Ministry of Commerce has 1 a bid by Coca-Cola to acquire China's top juice maker Huiyuan, saying the takeover could stifle competition and harm the growth of small juice makers in China.

In a statement posted on its website on Wednesday, the ministry says it rejected the 2.4-billion-dollar bid 2 China's Anti-Monopoly Law.

Song Hong is a researcher with the Chinese Academy of Social Sciences.

"If the purchase were given the green light, it would not only have a 3 impact on Huiyuan, but also harm the competitive environment and structure of the whole industry. Huiyuan is a big player in the Chinese juice market. If Coca Cola takes over Huiyuan, the two big players will have a dominant influence in the industry, and other juice-makers will be under great pressure."

Meanwhile, Han Meng, another researcher with the CASS, notes the deal will also have a negative impact on Chinese consumers.

"Huiyuan would disappear from the market if the deal were approved. 4 , US-made drinks would dominate the market. Then for ordinary Chinese consumers, they would eventually have fewer choices and be forced to accept higher prices."

Coca-Cola 5 purchase Huiyuan for a steep premium last September, marking the largest foreign takeover of a Chinese company. It submitted an application for anti-monopoly approval to the Ministry of Commerce in December.

Huiyuan controls over 40 percent of China's pure juice market.

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