June 17, 2013

    
Mengniu Dairy may acquire Yashili Group

Amid speculation over a possible acquisition of Guangdong Yashili Group Co Ltd, a privately owned milk powder maker, China Mengniu Dairy Co Ltd. suspended trading on Thursday (Jun 13).

Both Mengniu and Yashili suspended trading in the Hong Kong Stock Exchange on the same day as media reports said earlier that Mengniu might take over Yanshili with an offer of tens of billions yuan.

Mengniu announced in May that it will pay HKD3.18 billion (US$409.8 million) for a 26.9% stake in China Modern Dairy Holdings Ltd, which operates 22 dairy farms across the country. The move aims to complete its whole industry chain.