Coca-Cola Co, the world's biggest soft-drink company, said it has sought approval from the Chinese Ministry of Commerce for its US$2.3 billion acquisition of China Huiyuan Juice Group.
Coca-Cola filed the documents last week, Coca-Cola Asia's spokesman Kenth Kaerhoeg said in a phone interview yesterday with Bloomberg News. The soft-drink company offered HK$17.9 billion (US$2.3 billion) for Huiyuan, the companies announced on September 3.
The purchase of China's biggest maker of fruit juice by market share would be the largest ever overseas purchase by Coca-Cola, which is trying to boost its share of non-carbonated drink sales. Chief Executive Officer Muhtar Kent's second acquisition since taking over in July will give Coca-Cola about 20 percent of China's fruit-juice market, helping it maintain its lead over PepsiCo Inc, as US soda sales slow.
"We are working in full cooperation with the regulators," Kaerhoeg said.
Huiyuan said earlier this month it will help the US company win approval for the deal from the Chinese government.
Sales of China's fruit and vegetable juice will probably rise 16 percent to US$12.3 billion this year, more than double the growth of carbonated drinks, according to Euromonitor International, a market research firm.
(Shanghai Daily September 24, 2008)
