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Nestle, Danone to cut Chinese infant milk prices amid probe

Published on Jul 4, 2013 6:28 AM
 
A family looks at foreign imported milk powder products at a supermarket in Beijing on July 3, 2013. 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. -- FILE PHOTO: REUTERS

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.

 
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