Rumor: Danone Acquires Miaoshi's Chinese Factories

Local media is reporting that Danone China has just acquired the two big production bases of Miaoshi Dairy in Beijing and Shanghai.

Miaoshi Dairy is China's biggest dairy food company, which has six production bases in Beijing, Shanghai, Xinjiang, Baoding, Daqing and Sichuan. Because of the bad performance of its present marketing, four of the bases have stopped producing goods. Miaoshi's annual business volume of dairy goods was as much as RMB300 million in the past, but its present business volume is less than RMB100 million. Danone reportedly contacted Miaoshi for cooperation in 2003, but it ended up unsuccessful because Miaoshi was not prepared for the cooperation.

Miaoshi Dairy denied that it will be acquired by Danone in a press conference held this week. However the company does say it is true that Danone talked about acquisition with Miaoshi several years ago, but it was not realized at that time.

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