According to reports, Danone is considering the sale of its 20% stake in Japanese dairy drink producer Yakult Honsha Co for around $2 bn. Danone is the biggest shareholder of Yakult Honsha.
The move comes at a time when Yakult shares have risen 26% to reach record high levels this year. The proposed stake sale would end Danone’s over ten year business alliance with Yakult, which is best known for its probiotic and fermented milk drinks.
Danone signed a 10 year strategic business alliance with Yakult in March 2004. to jointly develop and market fermented probiotics drinks. The deal was signed after Danone raised its initial 5% stake in Yakult, acquired in 2000, to 20% in April 2003. The terms of the deal prevented Danone from acquiring a controlling stake in Yakult for the ten year duration.
However, the deal was terminated a year earlier in April 2013 after relationship between the two companies soured as Danone repeatedly pushed for boosting stake in the company. They then replaced the deal with a smaller level collaboration deal.
Source: Bloomberg
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