Oatly's Chinese Management Reportedly Mulling Acquisition of Local Operations

Deep News06-09

According to individuals with knowledge of the matter, the executives responsible for Oatly Group AB's operations in China are considering a buyout of the business.

These sources indicate that potential buyers are actively working to advance a deal, aiming to complete an acquisition of Oatly's Greater China business as early as this year. The individuals noted that related discussions are ongoing and may not necessarily result in a final agreement.

A representative for Oatly referenced the company's latest earnings report released in April, which stated the group was continuing to evaluate various options for its China business, including a potential carve-out, to accelerate growth and maximize value. Oatly will provide updates on this strategic review at an appropriate time.

Oatly initiated a review of its Greater China business last year, with considered options including a potential operational separation. In the previous quarter, revenue from Greater China fell 2.1% year-on-year to $29.3 million, primarily due to a decline in sales through its foodservice channel.

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