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China Rejected Coke-Huiyuan Deal: By-Vijay Krishnani
China Rejected Coke-Huiyuan Deal: By-Vijay Krishnani
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