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April 30, 2019

China dairy firm Yili withdraws offer for Pakistan’s Fauji Foods

Inner Mongolia Yili Industrial Group, one of China's largest dairy businesses, has withdrawn its offer for a majority stake in Pakistan's Fauji Foods.

By Dean Best

Inner Mongolia Yili Industrial Group, one of China’s largest dairy businesses, has withdrawn its offer for a majority stake in Pakistan’s Fauji Foods.

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  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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Dairy firm Fauji Foods notified markets of Yili’s exit from the deal, which would have seen the latter take a 51% holding in the company, in a filing to the Pakistan Stock Exchange yesterday (29 April).

The two sides were unable to reach an agreement over the sale and the transfer of shares and “as the time period to make the offer has lapsed”, Yili has withdrawn, according to the filing.

Yili first disclosed its interest in acquiring the firm, which is a subsidiary of Fauji Fertilizer Bin Qasim Ltd., to the Shanghai Stock Exchange in July. Fauji Foods markets a range of dairy and juice products under the brand name Nurpur.

Back in March, Fauji Foods said the country’s Securities and Exchange Commission had granted Yili a 90-day extension until 29 April to put in a public offer for the Lahore-based business. No financial terms have ever been disclosed.

Formerly Noon Pakistan Ltd., Fauji Foods’ origins date back to 1966. It owns a plant based in Bhalwal in the Sargodha district producing butter, cheese, UHT milk, pasteurised milk, tea whitener, flavoured milk, cream, ghee, honey and jam. 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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