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Capital, Earnings & M&A

The "Mengniu Faction" Unites Under One Banner

Regarding Mengniu's takeover of Shengmu, I disagree with the notion of 'rescue' or 'salvation.' The capital market is always about interests, not chivalry. However, this move confirms an unwritten rule: the old Mengniu people who followed Niu Gensheng often return to Mengniu after their second ventures. This trend gives hope to Mengniu-affiliated companies like Saikexing, Zhongding, and Tianmu, but they need strategic adjustments to attract Mengniu and secure a good price.

乳业专业优质媒体
Capital, Earnings & M&A

Shengmu's Piecemeal Sale: The Intellectual Contest Among Pan Gang, Lu Minfang, and Yao Tongshan

The contest among three top Chinese dairy executives has concluded. Pan Gang, Lu Minfang, and Yao Tongshan each demonstrated their distinct styles in the sale of Shengmu. Yesterday, Shengmu announced that Mengniu invested 303 million yuan for a 51% stake in a joint venture, with Shengmu holding the remaining 49%. Notably, Mengniu only acquired Shengmu's downstream production, processing, and sales operations, not its 116,900 dairy cows as of June 30, 2018.

乳业专业优质媒体