Coca-Cola in informal talks with Huiyuan -source

Thu Apr 23, 2009 7:45am EDT
 
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HONG KONG, April 23 (Reuters) - Coca-Cola (KO.N) is holding informal talks with China Huiyuan Juice (1886.HK) to weigh partnership options after China blocked its takeover of the company last month, a source with direct knowledge of the situation said.

In March, China rejected Coca-Cola's planned $2.4 billion acquisition of Huiyuan, saying the deal would have been bad for competition. The acquisition by Coca-Cola would have been the largest-ever buyout of a Chinese company by a foreign rival.

"After the deal collapsed there have been discussions in Beijing," the source said. The source declined to be named due to the sensitive nature of the situation.

Coca-Cola is in negotiations with Huiyuan that could include taking a minority stake in the Chinese juice maker's assets, a Wall Street Journal report citing unidentified sources said on Thursday.

A Coca-Cola spokesman in Hong Kong declined to comment when contacted by Reuters. A Huiyuan spokeswoman in Beijing also declined comment. (Reporting by Joseph Chaney)

 

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