Beleaguered Japanese dairy company Snow Brand Milk Products revealed that it has abandoned talks with Swiss food giant Nestlé, when it announcement earlier today [Wednesday] that it is to tie up with Otsuka Pharmaceutical Co in October.
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Snow Brand was seeking an alliance with a major company for its baby food business, which is due to be spun off in the autumn. In March it signed a basic agreement with the Japanese arm of Nestlé, but under this latest deal, Otsuka will control a 20% stake in the new unit.
Snow Brand and Otsuka have already formed a partnership in the nutrient business.
