By Dong Cao | Updated on Jun 09, 2026 at 02:46 AM
Executives overseeing Oatly Group AB’s Chinese operations are considering buying out the business, people familiar with the situation said.
The potential buyers are working to reach a deal for Oatly’s Greater China business as soon as this year, the people said, asking not to be identified discussing a private matter. Deliberations are ongoing and may not result in a deal, the people said.
A representative for Oatly cited the company’s latest earnings in April, when it said the group continues to evaluate options for the China business to accelerate growth and maximize value. Oatly will provide updates to the strategic review as appropriate.
Malmö, Sweden-based Oatly began a review of its Greater China business last year, with options including a potential carve-out under consideration. Greater China revenue last quarter fell 2.1% from a year earlier to $29.3 million, mainly because of a drop in sales in its foodservice channel, which includes partnership deals with chains such as Starbucks Corp., tea houses and boutique cafes.
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Oatly has said it expects to complete the China strategic review this year. The company’s products include alternatives to milks, ice cream, yogurt, cooking creams, spreads and drinks, and the brand is available in over 50 countries.
Oatly entered China in 2018 and opened a production facility in Ma’anshan in Anhui province in 2021.
Oatly shares have dropped more than 35% in the past 12 months, giving it a market value of $257 million.