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Danone to acquire 100% stake of Dumex Baby Food
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Saturday, 14 May, 2022, 15 : 00 PM [IST]
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Paris, France
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Danone unveiled that it agreed to sell to Mengniu the 25% stake the company holds in Yashili and the 20% stake it holds in the Inner Mongolia Dairy Joint Venture. In parallel, Danone will acquire from Yashili 100% of Dumex Baby Food Co Ltd, a Chinese manufacturer of Infant Milk Formula products.
The proposed transactions are not required to close simultaneously. Subject to the satisfaction or waiver of the conditions of each of the proposed transactions, it is expected that the earliest closing could take place this year. Further announcements on the satisfaction or, where applicable, waiver of conditions of the proposed transactions will be made in accordance with the Listing Rules and the Takeovers Code of Hong Kong.
The completion of these transactions will lead to the conclusion of the partnership Danone held with Mengniu over the last few years, following the disposal of Danone’s 9.8% minority stake in Mengniu in 2021.
China remains highly strategic for Danone, and today’s announcement will notably allow the company to further expand its ability to locally manufacture Infant Milk Formula products. In line with Danone’s capital allocation priorities, the expected proceeds will be dedicated to further deleveraging the company.
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