Swedish oat milk giant seeks transformation: Oatly's China business rumored to be acquired by executives, deal may close as early as this year

Glonghui, June 9th — According to Bloomberg, sources revealed that executives in charge of Oatly Group AB’s business in China are currently considering acquiring this business segment. These potential buyers are working to reach a deal for Oatly’s Greater China operations as soon as within this year. Relevant discussions are still ongoing and a transaction may ultimately not be reached.Oatly, headquartered in Malmö, Sweden, launched a review of its Greater China business last year, considering options including a possible business divestment. In the last quarter, revenue from the Greater China region dropped by 2.1% year-on-year to 29.3 million US dollars, mainly due to declining sales in its food service channel, which includes partnerships with chain brands like Starbucks, teahouses, and specialty coffee shops.Oatly’s products include milk alternatives, ice cream, yogurt, cooking cream, spreads, and beverages, with its brand footprint now present in over 50 countries worldwide. Oatly officially entered the Chinese market in 2018 and established a production base in Ma’anshan, Anhui Province, in 2021.Over the past 12 months, Oatly’s share price has declined by more than 35%, reducing its total market value to 257 million US dollars.