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.

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.

China's two dairy giants Bright Dairy and Yili have released their financial reports for the third quarter of 2008 and, being affected by the melamine scandal, each of the companies made net losses of over CNY200 million in Q3.

According to a senior official of the Shijiazhuang government Sanlu Group, which had suspended production because of the melamine milk scandal, has resumed production.

At the 21st anniversary meeting of Hangzhou Wahaha Group, the group's president Zong Qinghou said that they had expressed their intention to acquire the Shijiazhuang-based dairy enterprise Sanlu Group.