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In new move, Feihe to acquire goat milk firm

By Wang Zhuoqiong | China Daily | Updated: 2014-02-20 07:38

Heilongjiang Feihe Dairy Co Ltd, a subsidiary of Feihe International Inc, will acquire a 70 percent stake in Shaanxi Guanshan Dairy Industry Co Ltd for about 300 million yuan ($49 million), extending its portfolio into the goat milk powder business as it targets high-end consumers, a company executive said.

The deal, which is being finalized, is seen as an early step in the government's drive to rationalize the sector. Specific policies for the industry are expected to be released by the end of this month.

Industry analyst Song Liang said the deal, involving the goat milk industry, could help Feihe, which is pursuing more consumers in first- and second-tier cities.

In new move, Feihe to acquire goat milk firm

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