Chinese demand for Aussie infant formula has driven the share prices of several big-name ASX companies higher in 2019.
The A2 Milk Company Ltd (ASX: A2M) share price has rocketed more than 2000% higher in the last 5 years and remains the incumbent amongst the ASX-listed dairy companies.
Just a week ago we saw the Bellamy's Australia Ltd (ASX: BAL) share price surge 48.7% higher last Monday morning (16 September), after receiving a $1.5 billion takeover offer from the Chinese group China Mengniu Dairy Company Limited.
So, is it too late to get in on the ASX infant formula action, or are there still buying opportunities available for the keen-eyed Fool?
What's the deal with Bellamy's?
The potential takeover of Bellamy's took investors by surprise over the weekend with Mengniu offering $12.65 per share and a $0.60 special dividend per share – a hefty premium on Bellamy's pre-takeover price of $8.32 per share.
While the Bellamy's board has unanimously recommended the deal, I'd expect to see the deal to be scrutinised by the Foreign Investment Review Board (FIRB) given the current concerns over foreign ownership in Australia.
Bellamy's has been seeking approval from the Chinese regulator to sell its products into China for some time, and this partnership with Mengniu would increase its capabilities to challenge a2 Milk's dominance in the Asian market.
Is there time to buy ASX infant formula shares?
When looking to invest in Aussie infant formula groups, a2 Milk and Bellamy's remain the largest and most well-known companies on offer.
However, if you feel like you've missed the astronomical share price growth from either of these two groups, there is still hope for your ASX portfolio.
Bubs Australia Ltd (ASX: BUB) is primarily a goat milk infant formula group and another contender in the industry, with the Bubs share price nearly doubling in the last 12 months alone.
In June 2019, Bubs announced a new Chinese partnership of its own with leading Chinese baby retailer Kidswant and saw its shares surge higher in May as it announced it would be venturing into cow milk infant formula as well.
Bubs currently boasts a market cap of $624.3 million, which pales in comparison to the size of a2 Milk ($9.26 billion) or Bellamy's ($1.46 billion), but is larger than the $87.5 million Wattle Health Australia Ltd (ASX: WHA).
Foolish takeaway
Time will tell if the Bellamy's takeover will be approved, but there is no doubt the race to capture the Chinese infant formula market is heating up.
It's worth keeping an eye on some of these top Aussie infant formula stocks in 2020 to see if there are tactical buying opportunities in the early part of the year.
