Right Pulse

Following on from my previous Rio Tinto – Chinalco posts, this from China:

Lawyers and investment bankers said China’s rejection of Coca-Cola Co.’s $2.4 billion bid for China Huiyuan Juice Group Ltd. could prompt a backlash against Chinese investing abroad as it risks chilling investment within the country….

Yi Xianrong, a researcher in the finance and banking section of the government-backed Chinese Academy of Social Sciences, criticized the ministry’s rejection, saying it was “groundless” given the intense competition in the industry.

Lawyers and bankers said higher antitrust barriers from Beijing could further hinder companies trying to conduct deals and invest in China, where it long has been difficult to acquire assets from state-owned companies. The Finance Ministry on Wednesday announced rules that make it harder for foreign investors in financial-services businesses to buy or sell their stakes. This follows moves by some foreign banks in recent months to sell holdings in Chinese banks….

…Yang Xiulin, the marketing director of beverage company Hangzhou Wahaha Group Co. said “if national brands are gone, for the long term, it’s not good for the Chinese industry.”

So it’s okay for Chinalco – as a Chinese government business enterprise – to buy and control Australia’s strategic resource assets via Rio Tinto, but its not okay in China for a publicly listed foreign corporation to buy a local juice company.