China Mengniu Dairy Co., the country’s largest dairy producer, offered HK$12.5 billion ($1.6 billion) to buy a local infant formula maker as baby food demand surges and the government pushes for safer products.

Mengniu agreed to buy 75 percent of Yashili International Holdings Ltd. from Chairman Zhang Lidian’s family and Carlyle Group, it said in a statement today. It will also offer to buy the rest of the company at HK$3.50 a share in cash, or about 5 percent more than Yashili’s last trading price.

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