Mengniu in Deal to Buy Baby Formula Maker Yashili

(Beijing) – China Mengniu Dairy Co. Ltd. has said it will buy Yashili International Holdings Ltd., an infant formula producer in Guangdong.

The two companies announced the deal in a statement on the Hong Kong Stock Exchange on June 18. The announcement said the deal would be worth more than HK$ 10 billion.

Mengniu, one of the largest dairy firms in the country, offered two options to Yashili's shareholders. In the first, Mengniu would offer HK$ 3.50 in cash per share.