Now that Coca-cola Co. has
completed its application with the Chinese Ministry of Commerce for anti-monopoly approval of its $2.4 billion bid to acquire China Huiyuan Juice Group Ltd., what's the prognosis for the deal? For perspective, we turned to Anil Gupta, professor of strategy at the University of Maryland's Smith School of Business and author of the forthcoming book
"Getting China and India Right." Gupta expects the deal will in the next two months win approval. Why? Well, for one, while Coke's bid -- which would be the largest-ever foreign acquisition of a Chinese company -- is seen as the first true
test of the anti-monopoly legislation that took effect in China Aug. 1, Gupta says there is precedent. "There was a quasi test in InBev buying Anheuser Busch, because both companies have activities in China. The government did give that deal approval with some conditions."
But more significant, says Gupta, denying the deal could signal that China isn't open to foreign investment. And with economic growth in China slowing, that may not be the message the country wants to send.
- Suzanne Stevens
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