Coca-Cola Won’t Pursue Cadbury Brands

Coca-Cola Co. said it had given up its planned acquisition of Cadbury Schweppes’ beverage brands in Canada and Mexico because of regulatory concerns. The decision came less than two years after Coca-Cola, the world’s largest soft drinks company, cut a $1.85-billion deal to buy the lion’s share of the British sweets and soft drink maker’s non-U.S. beverage brands. The original deal was dramatically scaled back after it ran into regulatory trouble in Western Europe, Australia and several other areas over fears it would reduce competition in local markets. “We’ve said we’re committed to playing by the house rules wherever we do business,” Coca-Cola Chief Executive Douglas Daft said in a joint statement issued by Coca-Cola and Cadbury. “The authorities in both countries have made their concerns clear, and we are simply respecting those concerns,” he said. With the Canadian and Mexican portions of the Cadbury acquisition now out of the picture, Coca-Cola said it was confident there would not be any significant regulatory hurdles connected to the purchase. The company said it would focus on growing its existing brands and businesses in Canada and Mexico. Coca-Cola shares closed off 44 cents at $58.81 on the New York Stock Exchange.