China Dismisses Retaliation Fears Over Coke Decision

[Coventina]

Source: Bloomberg

March 20 (Bloomberg) -- China dismissed concerns its rejection of a Coca-Cola Co. acquisition will prompt retaliation, as an Australian lawmaker said the move supports his campaign to block a $19.5 billion Chinese investment in Rio Tinto Group.

“No, I’m not worried,” Vice Commerce Minister Chen Jian said at a briefing in Beijing today, when asked whether other nations would block Chinese investment. “We made our decision based on our antimonopoly law. Other countries have their laws and regulations which they will follow.”

The blocking of Coca-Cola’s $2.3 billion bid for China Huiyuan Juice Group Ltd., which would have been the biggest foreign takeover of a Chinese company, may give ammunition to opponents of the country’s acquisitions. Barnaby Joyce, an Australian opposition senator who has pushed for a review of foreign-investment laws in the wake of the Rio deal, said the Coca-Cola ruling is evidence of protectionism by China.

“Its refusal of the Coca-Cola bid shows that China wants to protect its own people,” said Joyce. “These are interesting times for trade between our countries and this decision shows that China is being protectionist but wants Australia to offer up its important assets for a quick sale.”



Read more: http://www.bloomberg.com/apps/news?pid=20601080&sid=a85cnySRVtLo&refer=asia

[Tempest]

1. Rio Tinto may not be around long if Chinalco doesn't buy them

Rio Tinto has a massive debt problem and credit is drying up.

Joyce may get a moral victory, but it could drive Rio Tinto out of existence.

[amandabeech]

2. Australia's financial institutions haven't had to ask for massive bailouts.

Australia may have money to bail out Rio Tinto.

It's an extremely important company for them, involving their natural resources.

I can understand why Australia might want to keep more control over it.

[spag68]

3. Rio Tinto

Rio will be around for a long time in one form or another. They own some of the largest copper and other mineral sites in the world. Selling that large a % of the company at depressed prices to China is not a smart thing for the aussies to do. Think of selling half of Montana to China, how would that make you feel?

[No Elephants]

4. America is the only country not allowed to be protectionist. Is there any

reason why I should care whether Coca Cola gets to acquire a Chinese company or not?