Source AP ©

French yogurt maker Danone sells stake in China's Bright Dairy

French yogurt maker Groupe Danone SA said Tuesday it is selling its whole stake in China's Bright Dairy & Food, ending a 15-year alliance with the Shanghai-based food conglomerate.

Danone plans to sell its 20.01 percent stake in Bright Dairy for 954.85 million yuan (US$127 million; EUR89 million) to Shanghai Milk Group and to S.I. Food Products Holdings Ltd., with each company buying 104.24 million shares.

The deal, which requires regulatory approval, will increase the stakes in Bright Dairy held by Milk Group and S.I. Food to 35.18 percent each, up from 25.17 percent each.

"The relevant business cooperation agreements and the intellectual property license agreement between the two parties (Danone and Bright) will be terminated as well," Danone said in a statement.

Danone said its cooperation with Bright had achieved "favorable results," but that the companies agreed on the equity transfer for the sake of their individual business strategies.

Danone and Bright set up a 50-50 yoghurt joint venture in 1992.

The French dairy goods maker also has a joint venture with China's biggest milk producer, China Mengniu Dairy Co., to make yoghurt and a stake in China Huiyuan Juice Group.

A joint venture with Chinese beverage maker Wahaha Group has been dogged by conflicts over ownership and management issues - including Danone's business ties with local competitors.

Comments
Presidential and midterm elections in the USA change the 'American project' entirely
Paris Peace Forum: A First Step but watch the Lobbies
Paris Peace Forum: A First Step but watch the Lobbies
Without INF Treaty, USA can destroy Russian nuclear weapons easily
Without INF Treaty, USA can destroy Russian nuclear weapons easily
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
Norwegians complain of demoralised NATO soldiers
Mikhail Gorbachev shares his thoughts on nuclear war
2018: A critical lack of common sense in world governance
2018: A critical lack of common sense in world governance
Russia unveils nuclear-powered interstellar spaceship
Without INF Treaty, USA can destroy Russian nuclear weapons easily
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
The difference between Polish and Ukrainian nationalism is plain to see
The difference between Polish and Ukrainian nationalism is plain to see
Capital outflow from Russia sets new records
World War II still continues today for the purpose of Anglo-Saxon global domination
Five-year-old boy does 4,105 pushups in 2 hours 25 minutes
On the report of Human Rights Watch against the DPRK
Without INF Treaty, USA can destroy Russian nuclear weapons easily
Russia unveils nuclear-powered interstellar spaceship