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Business

Milk powder businesses sold to subsidiary

A consumer picks up milk powder at a store in Dalian, Liaoning Province.

DALIAN, China -- China Mengniu Dairy will transfer its two milk powder businesses to subsidiary Yashili International Holdings. The leading Chinese dairy producer is aiming to secure profit by improving its efficiency. Yashili is a major milk formula producer.

     Mengniu Dairy established a joint venture with Denmark's Arla Foods in 2005. The venture company produces high-end milk powder and sells its products under the brand name of Mengniuarla. On Sept. 21, Mengniu Dairy announced that it will sell the venture business to Yashili International, which now has about a 51% stake in the business. The price tag is roughly 1.05 billion yuan ($165 million).

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