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Coke trims Cadbury deal
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July 26, 2000: 4:52 p.m. ET
Coke won't pursue acquisition of Cadbury's Mexican, Canadian drinks
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NEW YORK (CNNfn) - The Coca-Cola Co. will not proceed with its proposed acquisition of Cadbury Schweppes PLC's Canadian and Mexican beverage brands because of regulatory difficulties.
The original deal, announced in Dec. 1998, was valued at $1.85 billion. But that figure was pared back due to concerns that government regulators would be hostile to certain aspects of the acquisition.
The revised $705 million deal did not include brands in Canada, Mexico, Austria, and New Zealand, pending further regulatory review. Coca-Cola (KO: Research, Estimates) decided not to fight it out on the Canadian and Mexican fronts.
"We've said we're committed to playing by the house rules wherever we do business," said Doug Daft, Coca-Cola chairman and CEO, in a statement. "The authorities in both countries have made their concerns clear and we simply respecting those concerns."
Coke's size posed the greatest concern to regulators, who pointed to Coke's already dominant global share with trepidation.
In trading Wednesday, shares of Coca-Cola closed at 58-5/8, down 5/8, on the New York Stock Exchange. 
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