Coca-Cola has started fresh talks with China Huiyuan Juice Group for a partnership that may include taking a minority stake, after its HK$19.65 billion takeover bid for the mainland juice maker was blocked by the government, a source said.
'Coke is still interested in Huiyuan, particularly now when the asset price is much lower,' said the source. 'They are in discussions on some options to have a partnership including buying a minority stake.'
But the source said the talks were at a preliminary stage and a deal would not happen soon.
Last month, the Ministry of Commerce blocked Coca-Cola's acquisition of the country's biggest pure juice producer, citing an anti-monopoly law.
The surprise rejection underscores Beijing's willingness to protect the country's small number of valuable home-grown brands but raises concerns it is turning increasingly protectionist.
Huiyuan chairman Zhu Xinli had earlier described the restriction as the failure to 'pass the parent test', rather than any protectionism.
'As parents, they naturally worry about the boyfriend,' Mr Zhu said.