Reports: Huiyuan, Coca-Cola renew talks

MILWAUKEE — Chinese fruit juice maker Huiyuan Juice Group and Coca-Cola Corp. both declined to comment directly Friday on reports they were in renewed talks, this time for Coca-Cola to buy a minority stake in the company.

Chinese regulators objected last month to a deal that would have seen Atlanta-based Coke buy all of Huiyuan, China’s biggest fruit juice company.

The Wall Street Journal reported that the two sides were in talks again for a smaller deal, which could be more appealing to the regulators.

Shares of Huiyuan rose 13 percent to HK$5.74 on Friday, while shares of Coca-Cola slipped a penny to $42.91 in afternoon trading.

Last month, China rejected the Atlanta-based drink maker’s $2.5 billion bid to buy Huiyuan. It said later that it figured Coca-Cola’s dominance in the country’s carbonated drinks market could stifle competition and lead to higher prices if it were used to promote sales of Huiyuan Juice Group.

If the deal had gone through it would have been the biggest foreign acquisition to date in China.

There has been speculation that a smaller deal could satisfy regulators.

But on Friday, Huiyuan issued a statement acknowledging the reports it was in talks with Coca-Cola but not denying them.

“The company is unaware of the source of such information and would like to confirm that it is not in possession of any price-sensitive information which would require an announcement,” it said in a statement.

Coca-Cola told The Associated Press it would not comment on the media reports of the talks, calling them “speculation.”

Coca-Cola has been looking to expand its hold overseas and had said when the deal was rejected it was disappointed. Huiyuan’s founders and major shareholders likewise wanted the deal, although nationalists said it would have been a loss of a successful Chinese brand.

Earlier this week, Chief Executive Muhtar Kent told shareholders at Coca-Cola’s annual meeting that the company sees a chance to increase its market share during the economic slowdown and doesn’t plan to waste the opportunity. Kent cited opportunities in pushing its top brands in emerging markets like China.