Danone sells remaining investments in Mengniu partnerships, to reacquire Dumex

Danone will terminate its partnership with Chinese dairy company Mengniu by selling the 25% stake it holds in Yashili, and its 20% stake in the Inner Mongolia Dairy joint venture.

At the same time, Danone is buying 100% of Dumex Baby Food Company, which it announced it was selling in 2015 in a move to increase its stake in Mengniu Dairy.

In a statement, Danone said: “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.”

Once the deal is sealed, Danone’s long-standing partnership with Mengniu will come to an end.