| Coca Cola failed to buy Hui Yuan! | |
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| Mar 23, 2009 03:09 |   |
 | Last Wednesday, the Ministry of Commerce of China rejected Coca-Cola's 2.4 billion takeover of Hui Yuan, a Chinese juice company considering of anti-monopoly factors. China worries that this deal would have adverse effects on Chinese small domestic juice makers. However, this decision has been criticized by the lawyers. The lawyers said that China might take this chance to retaliate US for previous protectionism. What do you think? |
| Mar 23, 2009 03:45 | #1 |
| If China expects to be able to invest in other countries markets, such as the Australian mineral industry, this move may be sending the wrong signals. Dodger. |
| Mar 23, 2009 20:31 | #2 |
| Fed Reserves could plan to print money -an irresponsible behavior to US and its big creditors- to catch a breath in current tight credit market and try to depreciate its currency as well. Ban on meger between Coke and Juice would reduce the risk that cheap hot US dollar would flow into Chinese financial market through post- merger ''joint capital account''. The lesson from current cirisis: Financial market era could be gone as this market has proved to be nothing more than a bubble manifacturer and a hot bed for greed. |
| Mar 23, 2009 21:01 | #3 |
| It is understandable that China turned down Coca-Cola's takeover of Hui Yuan. Chinese government is afraid that Coca-Cola might monopolize Chinese domestic market. On the other hand, Chinese government's move also can be regarded as a revenge. The US once turned down several Chinese corporations' acquisitions and mergers of American companies. In 2005, the US turned down CNOOC's 13 billion acquisition of Unocal Corporation. It is said that Washington had intervened in this deal. Eventually, CNOOC withdrew its plan to acquire Unocal Corp. |
| Mar 24, 2009 23:57 | #4 |
| Jimmy, it is impossible for a company to monopolize a market unless there is government intervention; unless of course your interpretation of the word is different to mine. Dodger. |
| Mar 25, 2009 19:53 | #5 |
| The 5th generation of Chinese leaders all have the background of engineering, so they are less likely to react on impulse. HuiYuan is listed company, merger or acquisition is one of the channel that enable hot capital abroad legally to enter domestic financial market. Financial speculators, when playing, have no national identity, which means they can attach everywhere globally including their own motherland. The best example is WallStreet! |
| Mar 28, 2009 11:09 | #6 |
| Quote:Originally Posted by MARRIE US "BANK NOTES printing machine" is getting US dollar as global reserve currency status being shaked. In Europe, France and Germany will be the core hub to weaken dollar in Euro zone. BRIC could propose re-establishing international monetary system to challenge dollar hegemony in the coming G20 financial summit. With the expansion of RMB in East Asia and South East Asia, regional currency swap will challenge dollars as dominant trading currency. IMF’s SDR, a would to be super reserve currency, can gradually replace the dollar as well. |
| Apr 8, 2009 02:44 | #7 |
| Quote:Originally Posted by DODGER Jimmy, it is impossible for a company to monopolize a market unless there is government intervention; unless of course your interpretation of the word is different to mine.Dodger. Well, it might be hard for me to figure out if Coke Cola has monopolized the beverage industry in Chinese mainland. But I see Coke Cola and its advertisements everywhere. Huiyuan is probably the biggest juice producer in China. If Coke Cola buys it, there will be no corps that can compete with Coke Cola. |
| Apr 10, 2009 19:48 | #8 |
| There may be different opinion of different sections of the professionals because of their interests. But, personally, I support the Govt’s decision to protect small players of juice market. |
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