Five Chinese dairy companies meet to discuss Sanlu acquisition

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China has summoned five major dairy companies to come together to discuss the acquisition of the Sanlu Group, which had been involved in the tainted milk scandal.

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The Chinese milk manufacturers are believed to be interested in buying Sanlu include Wahaha Group Co Ltd, Wondersun, Sanyuan Food Co and Heilongjiang-based Feihe Dairy.

Bloomberg news cited Pang Gang, chairman of Inner Mongolia Yili Industrial Group Co, as saying China's biggest dairy maker has supposedly agreed to attend the meeting to discuss the acquisition of the company.

Commenting on the deal, Peng, an analyst at Shenyin Wanguo Securities, said: "Despite the damage to the brand name, Sanlu's assets, including the production line and supply chain, are still attractive."

Some 43 per cent of Sanlu is owned by New Zealand's Fonterra Cooperative Group Ltd.

According to the Associated Press, a spokesman for Fonterra said they did not send anyone to the meeting but expect to be briefed by representatives of Sanlu on the outcome.