Executives overseeing Oatly Group AB’s Greater China operations are reportedly considering a management buyout of the business, according to Bloomberg, which cited people familiar with the matter. The potential buyers are working toward a deal that could close before the end of 2026, though discussions remain ongoing and no agreement is guaranteed.
Oatly has not issued a formal statement in response to the report. A company spokesperson pointed to the April quarterly earnings release, in which the company said it is evaluating options for the Chinese business, including a possible carve-out, and would update stakeholders at an appropriate time.
Review under way since mid-2025
The Swedish oat milk company initiated a strategic review of its Greater China operations in July 2025, disclosing it alongside second-quarter financial results. Revenue from the region fell 2.1% year-on-year in the most recent quarter to $29.3 million, primarily due to declining sales in its foodservice channel, which includes partnerships with chains such as Starbucks and specialty coffee operators.
The Greater China arm recorded an EBITDA loss of $31.1 million last year, down from a loss of $65 million in 2023. Oatly’s share price has declined by more than 35% over the past 12 months, with its market capitalization sitting at approximately $256 million as of early June.
Oatly entered the Chinese market in 2018 and operates a production facility in Ma’anshan, Anhui Province. In early 2025, the company confirmed it would not proceed with a second factory in China, citing sufficient capacity at the existing site.
