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December 15, 2020

China Mengniu Dairy ups stake in local cheese maker Shanghai Milkground

Chinese dairy giant China Mengniu Dairy has increased its stake in a local cheese maker, it has announced.

By Leonie Barrie

Dairy giant China Mengniu Dairy has increased its stake in local cheese ,maker Shanghai Milkground.

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Via its subsidiary Inner Mongolia, the Chinese firm is to buy one million shares in Shanghai Milkground for CNY3bn (US$458m), raising its stake to 23.8% from the 5% it acquired in March.

Mengniu said in a filing with the Stock Exchange of Hong Kong (HKEX) this morning (15 December) the investment is in line with its development strategies as the company is “optimistic about the future prospects of the cheese market and recognises Shanghai Milkground’s long-term development potential”.

The deal has been agreed with the cheese maker's existing controlling shareholder Xiu Chai and means Mengniu now assumes that mantle, as defined by Shanghai Milkground's rules.

Mengniu said Shanghai Milkground's cheese business have seen rapid expansion in recent years. 

"With its substantial cheese production capabilities and technique, it has become a leading enterprise in the cheese industry in the PRC [People's Republic of China]," it said.

Shanghai Milkground manufactures and distributes dairy products including cheese, liquid milk, butter and cream. It has five manufacturing facilities across China.

Related Companies

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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