"This is a very normal process," she told Xinhua in a phone interview. "We simply submitted the materials according to the antitrust laws."
Any concentration should be reviewed when it has a global trade volume of 10 billion yuan (about 1.46 billion U.S. dollars) and the total domestic trade volume of the two sides exceeds 400 million yuan in the previous financial year, according to the Anti-monopoly Law of the People's Republic of China implemented on Aug. 1, and the Guidelines on Anti-monopoly Filings for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors issued in March last year.
The examination should happen when the total trade volume of all the related companies exceeded 2 billion yuan in the last financial year and the trade volume of the two sides in China exceeded 400 million yuan.
The law was welcomed by senior leaders of the American Chamber of Commerce in Shanghai. Coca-Cola was one of its members.
"Frankly, we welcome the new anti-monopoly law as it brings transparency to acquisition cases in China. We welcome the transparency," said AmCham chairman Norwell Coquillard at the Xiamen Fair.
"We understand the environment we invest in. We had estimated the market share of Huiyuan and Coca-Cola, which had reach the criterion, so we understand it has to be done," said Norwell, also the Cargill Investment (China) Ltd president.
Since the antitrust law was a new law, Coca-Cola's case would test the regulations, he noted.
His view was shared by Coca-Cola's Li. "Accurate laws clarify the investors concept of the procedures. It could also help to create a healthier investment environment and encourage more foreign investment."
The case would also help China to detail the law for future protection of some important domestic markets, said Li Fei, a Xiamen University economics professor.
The acquisition was considered to be a big step for the soft drink giant to explore its non-carbonated drinks market in China when the rate of carbonated drinks share had slowed.
Last year, Coca-Cola launched its Minute Maid juice brand in China as part of its expansion into the nation's fruit and vegetable drinks business. The category was valued at 10.6 billion U.S. dollars in 2007, while carbonated drinks were 7.4 billion U.S. dollars, according to Euromonitor figures.
"This acquisition will deliver value to our shareholders and provide a unique opportunity to strengthen our business in China, especially since the juice segment is so dynamic and fast-growing in China," said Muhtar Kent, Coca-Cola president and chief executive officer (CEO). The acquisition would be the 55-year-old American-born Turk's first major move since taking the reins as the company's CEO in July.
Coke offered a figure of an exclusive soft drink review from Methodology Canadean Ltd, a British investigation company for the drinks market, showing the market share would be lower than 20 percent if the marriage was a success.
Currently, Huiyuan has a domestic market share of 13.95 percent among the 134 large drink producers in China, according to figures of Beijing Orient Agribusiness Consultant, Ltd. (BOABC), a professional consulting firm specializing in agri-business consulting services to the food business.
