China dairy giants downplay poisoning scandal in hunt for big deals

Shanghai

A DECADE after Chinese dairy companies were roiled by a scandal that poisoned thousands of children, investors are seeing the biggest players as safe bets.

Inner Mongolia Yili Industrial Group Co and China Mengniu Dairy Co have soared to all-time highs as the companies hunt aggressively to build up their milk supply chains through foreign acquisition.

Also underpinning the bullishness is the virtual duopoly's rosy earnings prospects amid a shift to more profitable segments such as premium yogurt and infant formula.

With China's …