Danone to become second-largest shareholder of Mengniu
French food company Danone Group has agreed to invest 664 million US 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 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.
- 2013 Brand China Annual Figure Welcome Ceremony was held in BeiJing
- 2013 Brand China Annual Figures Television Awards Ceremony was held in Beijing
- The night of Top Grade Heaven •The Seventh Brand China Festival VIP Welcome Dinner held in Beijing
- the night of Top Grade of the Heaven--the Seventh Brand China Festival Television Aaward Ceremony
- Thousands of Famous Brands gleaned at Brand Festival with the “The Chinese Dream”
- 2009 Brand China Women’s Summit Forum
- “The Brand Olympics”to be Held on Aug.8
- The 4th Brand China Festival Curtain Fell in Beijing