Danone: reached an agreement with Mengniu


(CercleFinance.com) – Danone announces that it has reached an agreement with Mengniu to sell it its 25% stake in Yashili and its 20% stake in the joint venture Inner Mongolia Dairy.

The group also announces the acquisition of 100% of Dumex Baby Food, a Chinese infant milk manufacturer, owned by Yashili.

These transactions follow the sale of Danone’s 9.8% minority stake in Mengniu announced in 2021 and their completion will put an end to the partnership between Danone and Mengniu.

‘China remains a highly strategic country for Danone, and this announcement will notably enable Danone to strengthen its capacity to produce infant formula locally. In line with its capital allocation priorities, the proceeds expected from the operation will be dedicated to reducing Danone’s debt,” the group indicates.

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