One of China's biggest dairy companies is gearing up for a massive takeover of an Australian baby formula maker.
Mengniu Dairy has offered 1.5 billion Australian dollars ($1 billion) to buy infant formula maker Bellamy's Australia, the companies said Monday. Bellamy's said its board had unanimously recommended shareholders vote to accept the all-cash bid, which represented a 59% premium to the company's closing price on Friday.
The deal is still subject to approval from Australian regulators.
Earlier this year, China's top economic planning body said it wants domestic production of baby formula to be above 60% within three years. Domestic infant and toddler milk formula accounted for about 44% of the market in 2018, according to data analytics company Nielsen.
One of China's biggest dairy companies is gearing up for a massive takeover of an Australian baby formula maker.
Mengniu Dairy has offered 1.5 billion Australian dollars ($1 billion) to buy infant formula maker Bellamy's Australia, the companies said Monday. Bellamy's said its board had unanimously recommended shareholders vote to accept the all-cash bid, which represented a 59% premium to the company's closing price on Friday.
Earlier this year, China's top economic planning body said it wants domestic production of baby formula to be above 60% within three years. Domestic infant and toddler milk formula accounted for about 44% of the market in 2018, according to data analytics company Nielsen.
