On September 2, 2011, Nestlé announced that it had passed the antitrust examination of its acquisition of Yinlu Foods, which has been reported in Dairy Products China News in April 2011 by CCM International, suggesting that Nestlé becomes the big holder of Yinlu formally and starts to develop in protein milks industry.
Nestlé had announced its intention to acquire a 60% stake in Yinlu Foods on April 18, 2011, which means its move into China's blended protein milks market. According to the Antimonopoly Law in China, they have to submit a corresponding application to Ministry of Commerce. Fortunately, the application has been passed in September 2011. However, there are still lots of formalities about the change of stock rights needed to be dealt with for both Nestlé and Yinlu Foods.
This is win-win cooperation for both: Yinlu Foods can make use of Nestlé's brand reputation to expand its business, and it can also improve its management through working more closely with Nestlé. And Nestlé can increase its penetration in the 2nd and 3rd tier cities that are well-developed presence by Yinlu Foods where Nestlé's sales network is relatively weak.
(Guangzhou China, August 26, 2011)
Source: CCM International