Nestlé's acquisition of Yinlu was approved by the Ministry of Commerce to acquire Xu Fuji's remaining variables (VC319)

Nestlé's acquisition of Yinlu finally came to fruition after three months. At the end of August, the Ministry of Commerce had officially passed Nestlé Co., Ltd.'s acquisition of a 60% stake in Xiamen Yinlu Food Group Co., Ltd.'s centralized antitrust review of operators. He Tong, a manager of Nestlé ’s public affairs department, said that although the acquisition was approved, it also required approval from the government of the Yinlu factory to change the shares, namely Xiamen, Shandong and Hubei.
Variables in the acquisition of Xu Fuji
On April 18, 2011, Nestlé and Yinlu Food Group signed a 60% equity purchase agreement. The specific purchase price was not disclosed. Then Nestlé reported the acquisition to the Ministry of Commerce. On May 24, Nestlé's acquisition of Yinlu was formally filed by the Ministry of Commerce.
During the review lasting more than three months, the Ministry of Commerce conducted a review by soliciting opinions from relevant departments and conducting market surveys in five provinces and cities. Finally, in the second stage of the review, it was decided not to prohibit the case, from the date of approval The case can be implemented.
On September 4, He Tong, the manager of Nestlé ’s China Public Affairs Department, confirmed that Nestlé ’s acquisition of 60% of Yinlu ’s shares has been approved by the Ministry of Commerce. The acquisition has not yet been finalized, and the government of Hubei, Xiamen, and Shandong ’s Yinlu factories is still needed As for the approval of shareholding change, this is part of the approval process for such joint venture relationship and it will take some time.
"Nestle's acquisition of Yinlu is a foregone conclusion, but Nestlé's other domestic merger and acquisition case has been approved by the Ministry of Commerce or has variables." The industry believes that Yinlu has obvious advantages in the protein beverage market, but it cannot form a monopoly position. Nestlé and Xu Fuji are both huge. In China's candy market, Nestle's share is about 2%, ranking fifth among all manufacturers, and Xu Fuji's share in the domestic candy market exceeds 7%, ranking first. two. If Nestlé acquired Xu Fuji, although it has not yet achieved absolute control of the market share, it is also sufficient to further strengthen its voice and pricing power in the domestic confectionery industry.
Nestle is expected to receive Wyeth milk powder
On July 7, 2011, Pfizer announced that it will divest its strategic choices in animal health and nutrition.
"Pfizer sells Wyeth milk powder. At present, many buyers have already contacted Pfizer, including domestic dairy companies and Nestlé." According to people familiar with the matter, Wyeth milk powder accounts for 20% of the domestic infant milk powder market share. Few companies are optimistic about their market advantages.
Dairy expert Wang Dingmian said that three or four companies have been secretly contacted by Pfizer to sell Wyeth. It is difficult to tell which one has a big opportunity. The key is to see the price. However, Nestlé's determination to win Wyeth is relatively large. If the acquisition of Wyeth is successful, Nestlé will leap to the first position in the domestic milk powder market because of Nestlé's advantage in the ordinary milk powder market and the advantage of Wyeth's infant milk powder.
The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting.

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