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Rejection of Coke deal doesn't signal policy change

(Xinhua)
Updated: 2009-03-22 19:32

BEIJING - Commerce Minister Chen Deming said on Sunday that it would be wrong to assume China didn't welcome foreign investment based on the country's disapproval of Coca-Cola's proposal to acquire China Huiyuan Juice Group.

Related readings:  Rejecting Coke will not hurt China M&A plans: official  Huiyuan shares dive on Coke rebuff  Ministry: Disapproval on Coke acquisition not trade protectionism  Coke bid for juice maker turns sour  China rejects Coke bid to buy major juice maker  Coke fails to pass anti-monopoly review for purchase of Huiyuan

Chen made the remarks at China Development Forum 2009 held here.

The attempted acquisition took place between two foreign companies and didn't involve the country's policy on investment. The rejection was based on concerns over whether or not these two companies' sales in China would cause a monopoly, according to Chen.

Huiyuan is a firm registered in Cayman Islands located in the Caribbean region.

The Ministry of Commerce (MOC) announced on Wednesday that Coca-Cola's bid to acquire Huiyuan failed to meet requirements set out in the anti-monopoly law.