Danone sells its shares in Yashili and Inner Mongolia Dairy to Chinese Mengniu | Photo credits: ©Thomas Haley SIPA Press / Danone
PARIS, May 6 (Reuters) – Danone announced on Friday that it had reached an agreement to sell China’s Mengniu its 25% stake in Yashili and its 20% stake in joint venture Inner Mongolia Dairy.
The French agrifood giant indicates at the same time that it has acquired from Yashili the entire capital of the Chinese infant milk manufacturer Rumex Baby Fond.
These operations, which follow the sale by Danone last year of its 9.8% in Mengniu, will put an end to the partnership between the two groups, explains Danone in a press release.
“China remains a highly strategic country for Danone, and this announcement will allow Danone to strengthen its capacity to produce infant formula locally,” Danone said.
Danone announced in May 2021 that it had completed the sale of its 9.8% stake in Mengniu and that the proceeds of the operation would largely be returned to its shareholders via a share buyback program. (Written by Matthieu Protard, edited by Sophie Louet)