Danone to become second-largest shareholder of Mengniu
French food company Danone Group has agreed to invest 664 million U.S. dollars in Mengniu Dairy Co. Ltd, becoming the second-biggest shareholder of the leading Chinese milk producer.
The deal will increase Danone's stake in Mengniu to 9.9 percent from 4 percent, with the French company purchasing the additional shares for about 5.48 U.S. dollars per share, a Mengniu statement said on Wednesday.
Once the deal is completed, state-owned China National Cereals, Oils and Foodstuffs Corporation (COFCO), Danone and Danish dairy group Arla Foods will hold a 16.3 percent, 9.9 percent and 5.3 percent stake in Mengniu respectively, said the statement.
The three companies have agreed to combine their shares in a joint venture, COFCO Diary Investment.
In May, Danone acquired a 4 percent stake in Mengniu after establishing the joint venture with COFCO.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.
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