Milk sector stirs as Danone buys Yashili stake

French yoghurt maker Danone agrees to buy a 25% stake in Yashili for $567 million, allowing it to widen its brands and distribution network in China.

French yoghurt maker Danone on Friday agreed to buy a 25% stake in Hong Kong-listed Yashili International Holdings for HK$4.4 billion US$567 million, enabling it to expand its brands and distribution footprint in mainland China.

“Danone mainly has the Dumex brand in China in terms of infant nutrition powder, which is more at the premium end of the market,” Torsten Stocker, partner at management consulting firm AT Kearney, told FinanceAsia.

“For Danone, it is more a broadening of the brand portfolio towards mid-priced or mid-tier brands, said Stocker, adding that Yashili could also benefit from Danone's expertise in formulating infant nutrition powder....

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222