Top Investor Buys More a2 Milk Stock After Selloff on Nestle
- Harbour Asset adds to a2 Milk holdings as stock drops 10%
- Nestle to sell A2-protein only baby formula in China
Cans of a2 Milk Co. Platinum infant formula are displayed for sale at a Shanghai Aiyingshi Co. Babemax store in Shanghai, China, on Friday, Dec. 22, 2017.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Word of Nestle SA’s arrival in a corner of China’s infant formula market sent a2 Milk Co.’s stock price tumbling 10 percent last week, enough for its second largest shareholder to jump back in.
The selloff in a2 Milk was spurred by news that it faces direct competition from Nestle, following its move to sell A2-protein only baby formula in China. Far from a reason to worry, Nestle’s entrance, coupled with a2’s recent tie up with Fonterra Cooperative Group Ltd., is an endorsement of the science and technology underpinning the a2 Milk Co., according to Harbour Asset Management Ltd.