Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Modern Dairy Jumps as Mengniu Confirms Talks

Modern Dairy Jumps as Mengniu Confirms Talks
Cartons of China Mengniu Dairy Co. milk are for sale at a store in Beijing, China. Photographer: Nelson Ching/Bloomberg

China Modern Dairy Holdings Ltd. surged to an almost 20-month high after China Mengniu Dairy Co., the country’s biggest dairy producer, confirmed it had been in talks to acquire the supplier.

Modern Dairy jumped 9.9 percent to HK$2.55, the highest close since June 2011. China Mengniu dropped 2.1 percent.

There were discussions, and there wasn’t much progress, Frank Ning, chairman of Mengniu, said after delivering a speech at a Hong Kong conference yesterday.

Buying Modern Dairy would give Mengniu more control over its milk supply as concerns about safety in the nation’s dairy industry linger. Maanshan-based Modern Dairy supplies Mengniu with unpasteurized milk.

Excessive toxins were found in milk at one of the Mengniu’s warehouses in 2011. The company blamed the contaminants on moldy feed given to cows.

A Hong Kong-based investor relations representative at Modern Dairy, who said his last name was Wong, declined to comment on the talks or give his full name when reached by phone today.

Ning, who is also the chairman of COFCO, said he didn’t know when an agreement can be reached. COFCO, a government-backed company that has businesses ranging from food to grain trading, holds about 20 percent of Mengniu according to data compiled by Bloomberg.

The two companies have held discussions on a possible deal, Bloomberg reported in August.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.