The Coca-Cola Company ("Coca-Cola") declared a plan in September 2008 to acquire China's largest national juice manufacturer, China Huiyuan Juice Group Limited ("Huiyuan"). This acquisition will increase the market share of Coca-Cola from 12.7% to 20.2% in the nation's juice market that year. Because Huiyuan-branded fruit juice is just one of China's home-grown brands that were prominent, this news has triggered a public outcry rooted in patriotic nationalism against Coca Cola's acquisition. Local juice manufacturers have also protested, asserting that Coca Cola's enhanced market position would drive them out of business.
Coca-Cola's senior executives are mulling over the most effective strategies to convince the authorities this acquisition gains the society and also the consumers at large. Factors of concerns might include the merging businesses, and of the reasoning of regulatory control of M&A, synergies the possible effects of merging on competition, consumer interests and industry development. (Note: Case B covers the opinion by China's antitrust authorities on Coca-Cola's case and its particular implications for foreign companies attempting to expand business in the nation through acquisition of top national brands.)
PUBLICATION DATE: June 08, 2011 PRODUCT #: HKU945-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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