1、Coca-Cola & Huiyuan,M&A Case Study,September 3, 2008,November 3, 2008,December 4, 2008,March 5, 2009,March 18， 2009,The Coca-Cola company announced to cost $2.4 billion to acquisition Huiyuan company.,Coca-Cola merger and acquisition of huiyuan case has formally submitted to the ministry of commerce
2、 for approval,The Ministry of Commerce begin to hear the case,The board of directors of the Coca-Cola has more and more internal objections,Chinas commerce ministry officially announced, according to Chinas anti-monopoly law prohibited Coca-Cola acquiring huiyuan,Events schedule,Event introduction,S
3、eptember 3, 2008, the Coca-Cola company of the United States and its wholly owned subsidiaryAtlantic Industries, announced to cost hk $12.20 per share to acquiring all of Huiyuan companys issued share. In addition, they also plan to acquiring all convertible bonds and options of the Huiyuan juice co
4、mpany. Aggregate hold huiyuan juice company 66% of the shares Huiyuan holding company, Danone Group in France and the United States Huaping fund, these three big shareholders acceptted and make irrevocable promise to this case. However, the result was out of our expectation. Chinas commerce ministry
5、 officially announced, according to Chinas anti-monopoly law prohibited Coca-Cola acquiring Huiyuan.,why?,、The reasons for this M&A、The reasons for its failure,1、The motivation of Coca-Cola company2、The motivation of Huiyuan,1、Anti-monopoly2、Public pressure3、National brand protection,1、The motivatio
6、n of Coca-Cola,The present situation of the Beverage market The Coca-Cola company in Chinas beverage market is facing a lot of business pressure: carbonated beverage sales decline, the market share of the coke overtakes by Pepsi , pure water cant compete with Wahaha in the market, in the fruit juice
7、 lose to huiyuan, tea beverages is lost to MASTER KONG and Unity. Therefore, the Coca-Cola company has formulated the all-round development of beverage business, increase the coke market, especially fruit juice market marketing strategy.,The attraction of Huiyuan brand It is Chinas largest juice sup
8、plier and exporter. It is in leadership positions in pure fruit juice and the concentration fruit juice market. Both of the products will be benign complementary. There was no doubt that the Coca-Cola company in China and similar enterprises competition will get ahead.,2、The motivation of Huiyuan,Su
9、pernormal acquisition premiumIn the global market a piece of bad conditions, the acquisition gives nearly 3 times the company shares of the supernormal premium. Wholly-owned Huiyuan holding company will conflict over hk $7.4 billion shares transfer payment, and ZhuXinli would be its reputation chair
10、man of the board.,Capital and operating pressureFruit juice beverage is not only labor intensive industry, but also the typical capital intensive industry. From the raw material base construction, transportation and processing links, the advertisement promotion to sales channel, they need a lot of m
11、oney. In addition, in the short term, low concentration fruit juice more popular in our country. But Huiyuan in low concentration fruit juice market share is only 6.9%, far behind Coca-Cola, Unity and MASTER KONGr and other major competitors.,The temptation of upstream businessZhuXinLi sold the prod
12、uct and production line of the listed company, but has retained the orchard resources and raw materials factory of Huiyuan holding company. He thought highly of source control.,1、Anti-monopoly,The Commerce Department declare, in order to reduce the adverse effect, they required the Coca-Cola company
13、 to put forward the feasible solutionhas of the additional restrictive conditions. After the ministry of commerce assess the Coca-Cola companys solutions, it can not effectively reduce the adverse effect. Therefore, according to the anti-monopoly law, they decided to prohibit the acquisition.,2、Publ
14、ic pressure,As the Pie chart shows:Reasons for against: 1、May damage the fair competition and the interests of consumers 2、Will endanger industrial security and even national security 3、Worry about national brand to slip,3、National brand protection,Huiyuan company registered in the Cayman islands, the production base is in Beijing, listed in Hong Kong. In the globalization today, to protect national brand is not brand selling or not selling, but how to keep the national brand connotative and immortal.,M&A Fail!,Thank you!,
