China Mobile Halts Jego
China Mobile Ltd (NYSE: CHL, HKG: 0941), the world's biggest wireless carrier by subscribers, has suspended registration at Jego, a Skype-like mobile app it launched on June 1, 2013. The move has disabled Jego's calling feature as Internet-based phone calls are illegal in China. China Mobile hopes to pit Jego against Tencent Holdings Ltd's (HKG: 0700) popular WeChat app by differentiating services such as video communication, which WeChat does not offer.
Huiyuan Sells Unprofitable Unit to Uni-President
China Huiyuan Juice Group Ltd (HKG: 1886) said it had sold its subsidiary Shanghai Huiyuan to Uni-President China Holdings Ltd (HKG: 0220) for 300 million yuan. China Huiyuan is expected to gain 188 million yuan from the deal. Employing 123 people, Shanghai Huiyuan posted a 24-million-yuan loss in 2012. The deal is in line with the expansion plan of Uni-President, a beverage and instant noodle manufacturer, but not a cheap one, Deutsche Bank argues.
Tightened Baby Formula Rules Good News for Mengniu
The Chinese government's push for mergers of milk powder producers is favorable to China Mengniu Dairy Co's (HKG: 2319) recent bid for 75.3% of Yashili International Holdings Ltd (HKG: 1230) because the deal would have otherwise been hard to go through regulatory approval due to antitrust consideration, Deutsche Bank says in a research report. Mengniu offered $1.05 billion in cash for the stake earlier this month. The deal is expected to help Mengniu leverage on Yashili's experience in making infant formula and on its stronger distribution network in China. No new infant formula producers will be approved in China starting June 20, 2013.
Nestle Builds New Factories in China
Nestle SA said that it will open two factories in China in July, including a coffee plant and a food plant in Shandong province, Bloomberg reported. The food plant is a joint venture with Yinlu Food Group, but no financial details of the partnership was made public.
You are currently reading
total words in this article.
To continue reading this article, you must be a subscriber. Log in now..