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Thread: SanLu might be acquired by SanYuan!
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[quote=JIMMYB,326549]Tainted milk powder scandal has caused great losses to SanLu. SanLu estimates that it will recall about 10 thousand tons of tainted milk powder and it will pay more than 700 million yuan to the consumers. On the other hand, it need to pay the medical expenditure for all victims' family. Now Sanlu has used all its active capital to pay reparation for the consumers. What does this mean? SanLu will probably go bankrupt very soon. Except bankruptcy, Sanlu has another way to go---acquisition. It is said that Beijing SanYuan dairy company is very likely to acquire SanLu. Yesterday, SanYuan made an announcement that it had suspended trading its shares. The market believes that SanYuan just make preparations to acquire SanLu. And SanYuan said that there was indeed an acquisition case. As for details, SanYuan refused to give details about the acquisition. Probably, SanYuan will acquire SanLu very soon. SanLu's tainted milk powder scandal not only caused great losses to itself but also to its cooperator---Fonterra, New Zealand's dairy giant. Fonterra wrote down the value of its stake in Sanlu by 69 percent. What's more, Denmark's dairy giant Arla Foods was also involved in Meng Niu's tainted milk powder incident. It is said that Arla Foods has been required to stop producing milk powder. I guess that those foreign invested companies will consider more carefully when they cooperate with Chinese dairy companies. Maybe, they will change their strategies. To cooperate with Chinese dairy companies might become their second choice in the future. [/quote]
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