Mexico Rejects Coke Buy of Schweppes Brands

Mexico’s monopolies watchdog has rejected Coca-Cola Co.’s planned purchase of Cadbury Schweppes’ Mexican brands because of excessive domination of the local soft-drinks market, an official said. The Federal Competition Commission official, who asked not to be identified, said the $1.85-billion deal struck in December for Coke to buy all of Cadbury Schweppes’ soft-drink brands outside the United States, South Africa and France would hand Coke a 77% market share, compared with its current 70%. The commission is expected to announce its decision formally after the Easter break. “Coca-Cola has been informed,” the official said. It was not immediately clear what the implications of the decision by the Mexican commission would be, but the official said Coke would not be able to sell former Schweppes brands such as Canada Dry, Penafiel, Extra Poma and Balseca in Mexico. A Coca-Cola spokesman said that as far as the company was concerned, conversations were continuing with the monopolies commission.