Wednesday, March 18, 2009
Posted by D. Daniel Sokol
In what is a troubling development, the Chinese government has rejected the Coca-Cola acquisition of Chinese orange juice maker Huiyuan. Upon first glance, I do not see how this deal creates anti-competitive effects and indeed the real justification seems to be a nationalistic play on the part of the Chinese. This may backfire as the Chinese may soon discover that protectionism can work both ways. The political pressure on Chinese antitrust enforcers may have been too high and for relatively recent entrants into the world of antitrust, they may not have had the political capital to spend domestically to approve the deal.
Update: The WSJ Law Blog has the MOFCOM translated press release on its site.