Acquisition of Huiyuan juice group in China not to proceed
HONG KONG.- As a result of the decision of the China Ministry of Commerce (MOC) to decline approval for the proposed purchase of the Huiyuan Juice business, The Coca-Cola Company said today that it will not be able to proceed with the acquisition.
“We are disappointed, but we also respect the MOC’s decision,” said Mr. Muhtar Kent, President and Chief Executive Officer of The Coca-Cola Company.
“We put a tremendous effort into providing all the relevant materials to the MOC to ensure that they had all the information available and understood the transaction,” Mr. Kent said. “We were looking forward to working with the excellent Huiyuan team to stimulate new growth for the Huiyuan brand.”
“We will now focus all of our energies and expertise on growing our existing brands and continuing to innovate with new brands, including in the juice segment. Our recently opened USD 90 million Global Technology and Innovation Centre in Shanghai will play a key role in bringing this innovation to life,” Mr. Kent said. “We hold a long-term view of the China market, and are committed to ensuring that Chinese consumers have a wide variety of top quality beverage options available to them.”
Coca-Cola recently announced its commitment to invest USD 2 billion in China over the next three years in new plant and distribution infrastructure, sales and marketing, and R&D. This is in addition to the USD 1.6 billion already invested in China since the Company’s return in 1979.
“We will also continue our community investments in China. Whether it is working with Project Hope to help build schools and libraries across China, or working with educators to construct technology and multimedia centers for Chinese schools, or partnering with Government authorities to promote environmental education, or the World Wildlife Fund to help conserve and protect China’s precious water resources – we are firmly committed to a sustainable and prosperous future for all of China.”
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