China Mengniu Dairy, the country's biggest producer of liquid milk, is buying the remaining 48 per cent stake it does not own in a Wuhan venture for 134.4 million yuan to expand in central China.
Mengniu wanted to buy the stake in Mengniu (Wuhan) from its indirect subsidiary, Wuhan Frealth Dairy, Hong Kong-listed Mengniu said.
The net loss attributable to the 48 per cent Mengniu (Wuhan) holding was 4.3 million yuan last year, while the stake's net asset value was 68.6 million yuan at the end of December.
The Wuhan company makes and sells liquid milk in central mainland.
The acquisition would enable Inner Mongolia-based Mengniu 'to enhance its strategic development and competitiveness in central China' and expand market share in that region, the company said.
Mengniu is expanding in a market where competition is heating up.
