HONG KONG, June 18 (Reuters) - China Mengniu Dairy Co Ltd said on Tuesday it had offered to buy Yashili International Holdings Ltd for HK$11.4 billion ($1.47 billion), its second takeover in a month.
The deal with Yashili, which sources all of its products from New Zealand, marks the latest step by China’s milk industry to consolidate the market after several tainted milk scandals tarnished the fragmented sector.
For Mengniu, the purchase will strengthen its foothold in the milk powder segment, which currently contributes less than 2 percent of its revenues.
Last month, Mengnui announced a joint venture involving French dairy group Danone.
Hong Kong-listed Yashili International, with a market value of $1.5 billion, is 52.19 percent controlled by a holding company controlled by Chairman Zhang Lidian and 24.39 percent owned by Carlyle Group’s Carlyle Asia Partners. ($1 = 7.7598 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Michael Flaherty and Jeremy Laurence)