Last Wednesday, China's Ministry of Commerce (MOFCOM) announced its decision to prohibit the merger between Coca-Cola and Huiyuan. MOFCOM has since denied that its decision is protectionist. Coca-Cola offered to buy Huiyuan, the nation's largest juice maker, for 17.92 billion Kong Kong dollars (2.3 billion U.S. dollars) in cash. MOFCOM said that the bid failed to meet requirements set out in anti-monopoly laws and that if it went ahead, the transaction would disturb market competition.
MOFCOM said that the decision would have no effect on China's policy in accepting foreign investment and that the decision was based "on sufficient investigation and research, on the basis of facts, and strictly in line with the country's anti-monopoly law."