Mengniu Dairy, one of China’s largest milk producers, may make a bid for Pfizer’s (PFE.NYSE) baby food unit, which is up for sale next month, according to people familiar with the matter, the Financial Times reported. The business reported revenues of US$1.9 billion last year, and could be worth US$10 billion according to analysts. Pfizer plans to sell the unit to avoid a tax hit. Mengniu was also considering a bid for Yoplait earlier this year, but decided not to proceed. China’s dairy industry has faced a number of scandals in recent years: In 2008, several infant deaths linked to tainted milk led to an industry-wide investigation. Pfizer already has a strong presence in China, and buying an international brad could help Mengniu expand in a sector where Chinese firms have lost consumer trust.