Yili has announced a completed acquisition of 52.70% of Ausnutria Dairy Corporation, positioning itself as a leader in China's dairy powder market and aiming for substantial growth through operational synergies.

Target Information

Yili announced on March 3 that it has successfully acquired approximately 52.70% of Ausnutria Dairy Corporation, amounting to 953,163,623 shares, as of the offer's expiration date. This acquisition positions Yili as the largest shareholder of Ausnutria, paving the way for a complete takeover and affirming Yili's status as a leader in China's dairy powder industry.

The completion of this acquisition is expected to significantly enhance Yili's financial performance and earnings per share (EPS). According to Wind's consensus forecasts, the combined revenue of Yili and Ausnutria is projected to reach nearly 120 billion RMB in 2021. With the financial consolidation, Yili's performance metrics are anticipated to improve further.

Industry Overview

The dairy powder industry in China has witnessed substantial growth, driven by increasing consumer demand and rising health consciousness. In recent years, there have been significant developments in regulatory standards, with th