On 24th October 2011, China Mengniu Dairy Company Limited (Mengniu) had released an announcement to deny that the Negotiations with Pfizer Inc. (Pfizer) purchased its subsidiary—Wyeth's infant products business, while we can find that Mengniu is interested in this issue.
Pfizer had announced that it would sell out all the animal health & nutrition business in late July 2011, which attracts so many dairy enterprises' interest, because Wyeth is not escaped for its main business is infant products, the purchasing price of Wyeth is near USD10.5 million. Pfizer Inc. has purchased Wyeth with the total investment of USD68 billion in 2009, and Wyeth's infant formula business develops well in these years, covering 4.72% shares in domestic infant formula market according to the data from the State Information Center, and 16.76%, 12.06%,10.58% for Dumex, Mead Johnson and Nestle respectively.
After Pfizer decided its infant formula business, Nestle, Danone, Abbott and Mead Johnson, etc. expressed their interest in purchasing Wyeth. In late October 2011, Mengniu has also been involved in this acquisition event. However, most of investors have a negative outlook on Mengniu, because of the large purchasing cost. It is predicated that it will affect the structure of dairy industry in the world no matter who has acquired Wyeth at last.
(Guangzhou China, November 1, 2011)