Little Sheep buyout requires anti-monopoly review
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Yum! Brands Inc's proposed buyout of China's hot-pot chain Little Sheep Group needs to go through an anti-monopoly review, according to the Ministry of Commerce yesterday.
The ministry has yet to receive the application from Yum for the review, said Yao Jian, the ministry's spokesman.
Yum, which owns 27 percent of Little Sheep, announced on May 13 it plans to increase its stake to 93 percent by paying HK$6.50 (99 US cents) for each share of Little Sheep it doesn't own in the firm. The privatization of the Chinese company is valued at HK$4.56 billion.
Separately, Shenzhen Little Sheep Industrial Co's pork ball product failed to meet standards during a food safety check conducted by the local government, according to a statement from the Market Supervision Administration of Shenzhen.
About 45 batches of food items made by 36 companies were found have excessive bacteria and food additives, the market supervisor said, adding that it has asked the companies to seal and recall sub-standard products.
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