China Mengniu Dairy plans to bid for Pfizer Nutrition: report
24 Oct 2011
China Mengniu Dairy Co Ltd, the country's biggest dairy company, is planning to bid for Pfizer's infant-nutrition business, a unit that has been put for sale by the pharmaceutical giant in July, the Financial Times yesterday reported, citing people familiar with the matter.
Pfizer Nutrition was acquired as part of its $68-billion takeover of Wyeth less than two years ago. The business had revenues of $1.9 billion last year, which could value the business as much as $10 billion.
Based in Inner Mongolia and listed on the Hong Kong Stock Exchange, Mengniu Dairy, backed by state giant COFCO Corp, was eyeing an offer for Pfizer Nutrition, said the paper.
In early July, New York-based Pfizer had announced plans to sell or spin off its animal and nutrition units. It was considering options including, among others, a full or partial separation of each of these businesses from Pfizer through a spin-off, sale or other transaction.
The unit may draw companies including Danone, Nestle, Mead Johnson and Heinz, the paper said, citing people following the situation.
Pfizer Nutrition operates in six continents and sells its products in more than 60 countries, with a focused presence in key markets throughout Asia, the Middle East, Europe and Latin America, with China, Philippines, the UK, Mexico and Australia being among its top markets.