Following confirmation of milk producer Sanlu's bankruptcy, Beijing-based rival Sanyuan has adjusted its acquisition plan and announced that it will rent some of Sanlu's assets.

China's leading dairy group Mengniu has published a report, stating that according to the unaudited management accounts as of November 30, 2008 and other relevant documents, the group might see a CNY900 million loss in the year 2008.

The Shijiazhuang-headquartered Chinese dairy group Sanlu has confirmed that the group had handed in a bankruptcy liquidation application to the Intermediate People's Court of Shijiazhuang and all the work was being carried out in accordance with legal procedures.

Beijing based Sanyuan Foods has published a report which says that its board of directors has approved a proposal to set up a subsidiary in Shijiazhuang to facilitate its proposed acquisition and merger with Sanlu.

According to Weng Mao, chairman of Guanshengyuan Group, the company is preparing for a new market plan to launch a high-end product in overseas markets in 2009 and the product will be sold on the Chinese domestic market at the same time.

Following reports in Chinese media that its milk powder contains melamine, Mead Johnson, one of the major infant formula milk powder producers in the U.S., has announced that the reports were not true and its milk powder does not contain the harmful substance.