China Mengniu Dairy Buys Larger Stake in China Modern Dairy

After a series of accusations that it sold tainted milk, China Mengniu Dairy Co. Ltd., China’s largest milk producer by sales volume, bought a $410 million stake in China Modern Dairy Holdings Ltd., China’s largest unpasteurized milk producer, on May 8. Mengniu now owns about a 28 percent stake in China Modern. “The increase of Mengniu’s stake in Modern Dairy is to secure both quality and quantity of raw milk sources, as well as to further capitalize on our competitive edge in high-end milk sources,” Mengniu Chief Executive Sun Yiping told the Wall Street Journal.