Indofood CBP Sukses Makmur – part of Indofood Group – has acquired the entire stake of Danone’s Indonesian dairy produce subsidiary, in an attempt to boost its own dairy output.
In a statement published on the Indonesia Stock Exchange website, Indofood CBP revealed that its dairy subsidiary, Indolakto, has reached agreement with Danone Dairy Investments Indonesia Pte Ltd and Danone Asia Pte Ltd, to obtain 100 % stake of liquid milk producer Danone Dairy Indonesia.
“The transaction will be carried out with a price set at $20.53m, in accordance to price adjustment mechanism as conditioned in the sales and purchase agreement,” Indofood CBP said in the statement.
The transaction was expected to conclude in December, once Indofood CBP meets all the requirements in the agreement, including obtaining approval from the Investment Coordinating Board (BKPM).
“The transaction is aimed at increasing our production capacity to meet demand for dairy products in the western part of Indonesia, as well as strengthening our company’s position in Indonesia’s dairy industry,” the statement went on.
Indofood would also acquire Danone Dairy Indonesia’s trademark and industrial design for its top product, Milkuat, the company said.
Indofood CBP currently operates six business segments, namely noodles, dairy, snack foods, food seasonings, nutrition and special foods and beverages.
The company’s dairy unit is the second-biggest revenue contributor after its noodle products, which dominate the country’s noodle market under the brand Indomie.
Source: Jakarta Post
© FoodBev Media Ltd 2020
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