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News > Deals
Coke trims Cadbury deal
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. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.