Compiled by Caijing

(Caijing.com.cn) The Ministry of Commerce declined to say whether it will extend an anti-trust review of Coca-Cola Co’s HK$ 17.9 billion deal to buy Huiyuan Juice Group (HKG: 1186), just days before Coke’s offer to Huiyuan is set to expire.

Responding to a query from Caijing on whether an extension is being considered, a ministry spokesman, Yao Jian said that the review, scheduled to conclude on March 20, can be extended in the event of material changes to the situation, and if the laws permit.

Coca-Cola's offer expires on March 23. It announced the proposed takeover of Huiyuan in September at the equivalent of HK$12.20 per share, nearly triple the HK$4.14 price before the deal was announced.

At 3:46 PM March 17, Huiyuan’s Hong Kong shares were trading at HK$10.34.

Huiyuan is China’s largest juice company, and the deal has raised the usual objections which crop up when foreign firms seek to take over national champions.

But the massive decline in global asset values in late 2008 means that the premium Coke offered late last year may no longer justified.

With the review process dragging on to within days of the March 23 expiry, the soft-drink group may actually have an interest in the deal being rejected, allowing it to renegotiate on price. An extension of ministry deliberations past March 23 may also have the same effect.

Coke’s recent public statements signal a continued commitment to investing in China. Earlier this month the company said it plans to invest a further US$2 billion in China in the next three years, over and above the approximately US$2.4 billion Huiyuan acquisition cost.

Full article in Chinese: http://www.caijing.com.cn/2009-03-17/110122507.html