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Back in September, I wrote about the Coca Cola Co.'s (NYSE: KO) offer to acquire Beijing-based China Huiyuan Juice Group Ltd, China's number one 100% juice and nectar company for $2.4 billion.

But almost immediately, there were questions about whether the deal would ever be consummated. Steve Mallas wrote that the acquisition would "be the first case presented under a new antitrust law put into effect by China a little over a month ago. Traders have sent shares of China Huiyuan Juice Group lower under speculation that the transaction is not a sure bet."

Continue reading China rejects Coke's bid for Huiyuan Juice

China rejects Coke's bid for Huiyuan Juice originally appeared on BloggingStocks on Wed, 18 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ChinaCoca ColaCocaColaHuiyuaninthenewsKOWed, 18 Mar 2009 08:30:00 EST<![CDATA[Coca-Cola (KO) embarks on massive acquisition in China]]>http://www.bloggingstocks.com/2008/09/03/coca-cola-embarks-on-massive-acquisition-in-china/http://www.bloggingstocks.com/2008/09/03/coca-cola-embarks-on-massive-acquisition-in-china/http://www.bloggingstocks.com/2008/09/03/coca-cola-embarks-on-massive-acquisition-in-china/#commentsFiled under: ,

Coca-Cola (NYSE: KO) has offered [subscription required] to acquire Beijing-based China Huiyuan Juice Group Ltd, China's number one 100% juice and nectar company. The deal, which would be the second largest in Coke's history (behind Vitamin Water), would require the approval of Chinese regulators.

Coke says the deal would be accretive to earnings in third year -- but of course there are lies, damn lies, and forward-looking statements. The deal represents a continuation of Coke's efforts to diversify away from the declining soft drink industry and into higher-priced, more natural beverages.

The question is whether Coke will be able to add meaningfully to the value of these brands with its own marketing and distribution power. If Coke is just pumping up its sales by adding brands at high prices, that's probably not a good strategy for long-term shareholder value. Very few companies have been able to create such value through acquisitions, and Coke's shopping spree should be seen as a sign of increasing weakness in the company's current businesses.

Coca-Cola (KO) embarks on massive acquisition in China originally appeared on BloggingStocks on Wed, 03 Sep 2008 13:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Coca ColaCocaColaCokeHuiyuaninthenewsKOWed, 03 Sep 2008 13:55:00 EST