What’s new: Midsize dairy products maker New Hope Dairy announced plans to slurp up northwest Chinese peer Ningxia Huanmei Dairy Development Co. Ltd. for 1.7 billion yuan ($242 million).
The company said it would use the acquisition to expand its business to China’s northwest, where Huanmei is a major player.
Following the announcement, New Hope Dairy’s shares rose by the 10% daily limit on the Shenzhen Stock Exchange.
The background: Founded in 2006 by Liu Yonghao, who made his fortune on animal feed, New Hope Dairy makes low temperature pasteurised milk and dairy products at 10 processing facilities around China, and raises livestock on 11 dairy farms.
The company has completed a string of acquisitions in recent years, and had 35 subsidiaries as of January 2019.
Its latest acquisition is part of an ongoing consolidation of China’s dairy industry, as smaller local operations are gradually bought out by more professionally run outfits with economies of scale.
Quick Takes are condensed versions of China-related stories for fast news you can use.
Contact reporter Flynn Murphy (flynnmurphy@caixin.com) and editor Gavin Cross (gavincross@caixin.com)
