The core assets of the disgraced state-owned dairy giant Sanlu Group were bought by Beijing-based Sanyuan Foods yesterday for 616.5 million yuan (HK$700 million) in a five-minute auction held in a courthouse in Shijiazhuang, Hebei province.
Sanlu was one of 22 mainland dairies whose products were found laced with the industrial chemical melamine in September. Six babies died and nearly 300,000 fell ill.
Sanlu was declared bankrupt in February, and former chairman Tian Wenhua was jailed for life.
Bidding started at 600 million yuan. The assets included land-use rights, buildings and equipment, as well as Sanlu Linhe Dairy, Xinhua reported. Most media were barred from Shijiazhuang Intermediate People's Court.
Critics said the auction would make it impossible for affected families to obtain compensation from Sanlu.