Yashili to take over Mengniu infant formula business

摘要

Chinese infant formula manufacturer Yashili International Holdings Ltd. is to acquire Oushi Megniu, the milk powder production arm of the China Mengniu Dairy Company Ltd., at a cost of RMB1.05 billion (US$ 165.3 million) in cash, subject to shareholder approval. Parent company Mengniu International currently holds a 51.04% shareholding in Yashili and part of the rationale behind the sale is to limit the competition between the two businesses in the Chinese infant formula market. Other benefits for Yashili include the optimisa- tion of production and an increase in market share.