Mengniu Dairy eyes Pfizer’s infant-nutrition unit

China-based dairy company Mengniu Dairy is considering placing an offer for Pfizer’s infant-nutrition business, as potential bidders get ready for the start of the sale procedure in November.

In July, Pfizer announced it might spin-off or sell its baby nutrition division to its shareholders, following its review of businesses that are not associated with drug discovery.

Industry specialists say the sale may fetch as much as $10bn.

The bidders expected to participate in the sales process include Danone, Nestlé, Mead Johnson and Heinz.

Pfizer’s infant-nutrition unit, which is ranked five in terms of market share in baby food segment in China, posted sales of $1.9bn in 2010.

Morgan Stanley and Centerview Partners are advising Pfizer on the sale, while Mengniu has consulted UBS over the potential bid for the business.