BEIJING (AFP)--China said Friday it wasn't concerned its veto of
Coca-Cola's takeover bid for a juice maker would trigger an
Australian rejection of a Chinese company's attempt to buy into
mining giant Rio Tinto Ltd. (RIO.AU).
"I'm not worried," said Chen Jian, a vice commerce minister,
referring to a plan by aluminium maker Chinalco, or Aluminum Corp.
of China Ltd. (ACP) to invest $19.5 billion in debt-laden mining
giant Rio Tinto.
"From a business point of view, the acquisition is definitely
beneficial to (both sides)," he told reporters.
Chen was replying to a question on whether his ministry's
decision to block a Coca-Cola offer for China's top juice producer
Huiyuan could lead to Australia making a similar move against
Chinalco.
Australia said Monday it would delay by 90 days a decision on
whether to let Chinalco go ahead with the acquisition, which would
double its Rio Tinto stake to 18%.
"There is no reason to make a fuss just because (the approval)
is postponed for 90 days," said Chen.
He also said it didn't follow that blocking Coca-Cola's
acquisition would lead to retaliation by other countries.
"Other nations have their own anti-monopoly laws. They can make
their decisions according to the laws," he said.
His ministry earlier this week vetoed Coca-Cola's $2.4 billion
bid for Huiyuan, which would have been the biggest foreign takeover
of a Chinese firm.
China based its rejection on a new anti-monopoly law, but the
decision sparked concern that growing economic nationalism in China
was causing a backlash against overseas investment.
Barnaby Joyce, a senator of Australia's National Party, was
quoted in the Business Day Friday as saying the Coke case "signals
that China is prepared to play the protectionism game but expects
Australia to allow China to buy into our strategic assets."