Danone increases stake in China’s Mengniu
Danone has agreed with COFCO Dairy Investments to subscribe a reserved rights issue by China’s leading dairy company Mengniu, raising its interest in this company from 4% to 9.9% for an investment of €486 million.
The transaction makes Danone the second largest shareholder in Mengniu, and follows on from agreements signed on 20 May 2013 with Mengniu and with COFCO, China’s largest state-owned food company.
In parallel, COFCO, Danone and Arla — 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.
