France Blocks Coca-Cola’s Orangina Buyout

The French government blocked Coca-Cola’s proposed $850-million buyout of Orangina, France’s most popular soft drink, from Pernod-Ricard. The announcement came as a surprise because analysts had considered government approval a formality, although there was opposition from Pepsi-Cola Co., which had feared losing its distribution channels in France because of the deal. The government said that a study it commissioned from France’s Competition Council showed that Coke stood to gain an unfair advantage over its competitors in French bars and restaurants. “These risks are liable to penalize the consumer,” the French Finance Ministry statement said. “We’re disappointed at the government’s initial decision,” spokesman Rob Baskin said at Coke headquarters in Atlanta. “However, the government has indicated that there is an open door for further consideration of undertakings, and we will continue to evaluate our options.”