Danone Increases Stake in China’s Leading Dairy Group
February 12
13:02
2014
Danone is raising its stake from 4.0% to 9.9% in Mengniu, China’s leading dairy company, for an investment of €486 million. The transaction makes Danone the second largest shareholder in Mengniu, and follows on from agreements signed on May 20, 2013 with Mengniu and with COFCO, China’s largest state-owned food company.
In parallel, COFCO, Danone and Arla Foods — Mengniu’s three core shareholders — will combine their stakes (16.3%, 9.9% and 5.3%, respectively) within COFCO Dairy Investments, a jointly-owned company pooling all three shareholders’ interests in the governance of Mengniu.
The transaction is subject to the approval of Mengniu’s shareholders, and is expected to be finalized within the next few months.
