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Bright Dairy plans buying spree

By Ding Qingfen and Li Weitao (chinadaily.com.cn)
Updated: 2009-03-04 14:00

Bright Dairy, one of the leading dairy makers in China, is planning a slew of acquisition activities this year, a company executive said on Wednesday.

"We will announce some acquisition deals in the first half of this year," said company Vice President Ge Junjie on the sidelines of the annual session of the Chinese People's Political Consultative Conference (CPPCC), which opened on Tuesday.

Chinese dairy makers were hit hard by an industry-wide scandal last year. Many were found to be selling baby formula tainted with the industrial chemical melamine. At least six Chinese children died from kidney stones and other agonizing complications caused by the tainted milk.

The scandal brought some "negative" effect on Bright Dairy's business, but not as much as on its peers, said Ge.

Instead, the crisis has presented a "good chance" for Bright Dairy to initiate acquisition activities to expand its presence, the vice president said.

Beijing Sanyuan Food Co Ltd won the bid for Sanlu's assets by paying 616.5 million yuan ($90.13 million) on Wednesday. Sanlu, at the heart of the melamine scandal, went bankrupt and its former chairwomen Tian Wenhua was sentenced to life in prison in January.

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Bright Dairy plans buying spree