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Danone to become second-largest shareholder of Mengniu

English.news.cn   2014-02-12 14:14:57

SHANGHAI, Feb. 12 (Xinhua) -- French food company Danone Group has agreed to invest 664 million U.S. dollars in Mengniu Dairy Co. Ltd, becoming the second-biggest shareholder of the leading Chinese milk producer.

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 U.S. dollars per share, a Mengniu statement said on Wednesday.

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.

In May, Danone acquired a 4 percent stake in Mengniu after establishing the joint venture with COFCO.

Editor: Mengjie
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