Danone to become second-largest shareholder of Mengniu Dairy
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.
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. ■