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CHINA REJECTED

COKE-HUIYUAN DEAL
By-VIJAY KRISHNANI
Issues Involved in the Case
 The Protectionism against Recession
 Anti-Monopoly Law Enacted Last year
 Coke – Dominant of the China Market
 Issue regarding to Investment in Australia
 China Firms will find difficulty to become

Global
Decision Taken by China
 One Man's Market Leadership...
 Small Enterprises will be effected
 Coke deal would have been bad for

competition
 Coke will become a ruler of the market
 80% Public denied for this DEAL
Continue….
 FDI Policy of China
-WFOE or JV
- Small Company
- Companies suffering from financial
Problems
- Not permitted under any circumstances to
purchase a majority interest in a large and
successful established Chinese company
Benefits Coke was giving China out of
deal
 Benefits to China Economy
 Benefits to Shareholder
 Community Investments in China
-Schools and Libraries across China
-Construct Technology
-Multimedia Centers
-Wildlife Fund to help conserve and protect
China's precious water resources
 Juice Sales in China will grow about 94%
through 2012
Effect on China of Decision
 Chinese Firms in Abroad will be in Trouble
 Australia’s Foreign Investment Review Board

is considering three Big investments by


Chinese state-run companies in its mining
sector
 Rio Tinto Ltds planned $19.5 billion tie-up

with Chinese state-owned China co


 Other countries will regard Acquisitions by

Chinese Companies in a very similar way


THANK YOU
Q &A

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