Shanghai, Sept 9 - Competing Chinese juice makers may protest to the government against Coca-Cola Co's planned $2.5 billion purchase of China's Huiyuan Juice Group, the official China Securities Journal said on Tuesday.
But the newspaper said it was unclear whether such a protest could block the deal. It quoted legal experts as saying the deal had a good chance of being approved under China's new anti-monopoly law, which took effect last month. Coca-Cola offered last week to buy Huiyuan, which controls 10.3 percent of the fast-growing Chinese fruit and vegetable juice market, in what would be the biggest takeover in China by a foreign company.
The official China Securities Journal reported on Tuesday that other Chinese juice makers were discussing whether to make a joint protest to the Ministry of Commerce, arguing that the acquisition would put them under crippling competitive pressure.
The companies may demand that if the acquisition goes ahead, Huiyuan should be required to put some of its brands and assets up for sale at an auction in which its Chinese competitors could participate, the newspaper said.
However, the newspaper did not identify the Chinese competitors by name or say when the protest might be lodged.
The newspaper also cited a commerce ministry official as saying the acquisition would not hurt national security, and quoted unnamed legal experts as saying it did not appear likely to dampen competition in the highly fragmented juice market.
Huiyuan, over one-fifth owned by France's Danone, claims to control about 43 percent of China's pure-juice market. Danone and two other shareholders, with a combined 66 percent of Huiyuan, have agreed to sell their stakes to Coca-Cola.
The deal has aroused Chinese public sentiment against the sale of a beloved domestic brand to foreigners. In a survey by Chinese Internet portal sina.com, 82.3 percent of respondents opposed the acquisition.
Such sentiment has sometimes appeared to contribute to delays in the Chinese government's approval of planned acquisitions by foreign firms, and in some cases may have helped to kill deals.
In other cases, however, deals have gone through despite lobbying by domestic interests.
Late last year French household appliances maker Seb won final approval, after over a year of scrutiny, to take control of Zhejiang Supor Cookware Co in a $310 million deal. Supor's local competitors had unsuccessfully lobbied the commerce ministry to block the transaction.