19 April 2019

China to speed up M&A among infant formula makers, paper says

China will step up mergers in the infant formula industry and raise the entry threshold for newcomers, Economic Information Daily reported Thursday, citing unnamed sources. Guidelines on the restructuring will be released soon, the report said. The government wants to limit the industry to three to five big players with annual sales revenue of more than 5 billion yuan (US$814.3 million) by the end of 2018. The top 10 companies should control more than 80 percent of the market which will be reduced to no more than 50 players from 80 at the end of 2015, the report said. The government will offer tax breaks during the restructuring, it said.

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