《毕马威案例大赛北大邀请赛初选案例》.pdfVIP

COCA-COLA AND HUIYUAN (A): ANTITRUST BARRIERS TO BUYING TOP CHINESE BRANDS Frankly, we welcome the new Anti-Monopoly Law as it brings transparency to acquisition cases in China. We welcome the transparency. ... We understand the environment we invest in. We have estimated the market shares of Huiyuan and Coca-Cola, which have reached the criterion [for antitrust review] , so we understand it has to be done. - Norwell Coquillard, chairman of American Chamber of Commerce in China1 On 3 September 2008, the Coca-Cola Company (“Coca-Cola”) escalated the cola war in China by announcing its plan to acquire the country’s biggest domestic juice manufacturer, China Huiyuan Juice Group Limited (“Huiyuan”). This acquisition would boost Coca-Cola’s market share in the country’s juice sector from 12.7% in 2008 to 20.2%,2 and would allow the company to gain a leg up against its archrival PepsiCo Inc (“PepsiCo”) in cracking the huge Chinese beverage market. Because Huiyuan fruit juice was one of China’s prominent home- grown brands, this news immediately triggered a public outcry from patriotic nationalists against Coca-Cola’s acquisition. Local juice manufacturers also protested, claiming that Coca- Cola’s enhanced market position would drive them out of business. This deal was announced just one month after the enactment of China’s Anti-Monopoly Law. Some analysts worried that it might not be approved by the Ministry of Commerce (“MOFCOM”), the regulatory body for MA control. In mid-December 2008, MOFCOM extended the examination period of this case by three months and planned to host a public hearing in late December that would be attended by key industry players. Coca-Cola’s