Dairy giant Yili considers bid for Ausnutria

Ausnutria represents, according to Bloomberg, a market value of more than €1,5 billion. Nothing has been officially announced about a bid, but the Hong Kong stock exchange, where Ausnutria is listed, immediately took measures on Monday, October 4, to regulate trading in Ausnutria shares. Trading was initially delayed by fifteen minutes and halted for a short time. The price rose by just under 6% on Monday.

In Chinese hands
Ausnutria is majority Chinese owned. In 2018, Chinese state-owned company Citic acquired a 22% stake and became the largest individual shareholder. The company has most of its production base in the Netherlands. The Dutch also still have a minority share in the company and a Dutchman holds sway as CEO. Ausnutria also has a 50% stake in it Farmel.

Ausnutria is mainly active in the production of infant food based on goat's milk, although less food based on cow's milk is also produced. The main brands are Kabrita and Neolac. Unlike many other infant food manufacturers, Ausnutria has so far reported few problems with the sale of infant food in China.

It is not yet clear whether there will be a formal offer from Yili. According to Bloomberg, the company is in the process of approaching financiers. It is also taken into account that Yili's bid will ignite a takeover battle.