China’s state media announced Tuesday that officials have launched an investigation into foreign producers of baby formula for possible price fixing and anti-competitive activity, The Wall Street Journal reported. The companies targeted by the probe include Switzerland’s Nestlé (NESN.VTX), France’s Danone (BN.EPA), Netherland-based FrieslandCampnia, US-based Abbott Laboratories (ABT.NYSE) and Mead Johnson Nutrition (MJN.NYSE). A China-based formula importer Biostime (1112.HKG) will also be probed. The investigation comes as Beijing seeks to bolster scandal-plagued domestic brands, with some of the country’s milk producers revving up their efforts in formula production.
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