Nestle, Danone to cut Chinese infant milk prices amid probe
HONG KONG (REUTERS) - Swiss food company Nestle and French rival Danone are cutting the price of infant formula milk in China after Beijing launched an investigation into possible price-fixing and anti-competitive behaviour in the sector.
Wyeth Nutrition, which Nestle bought last year, said on Wednesday it had been cooperating with a probe by China's National Development and Reform Commission (NDRC) and was responding by cutting prices and improving sales and marketing practices.
Danone said in an e-mail to Reuters that its Dumex business had also been cooperating with the NDRC and was preparing a price-cut proposal whose details would be disclosed later.
Both companies, along with Mead Johnson Nutrition Co and Abbott Laboratories, said on Tuesday they were being investigated by the NDRC.