Sector News

Yashili seals $159 mln deal for Danone's Dumex China unit

December 2, 2015
Food & Drink

(Reuters) – Yashili International Group Ltd has completed a 150 million euro ($159 million) deal to buy all of Danone SA’s infant formula unit Dumex China, the firms said on Wednesday.

France’s Danone has been struggling to revive its Dumex China unit after food safety scares damaged the business, squeezing its share of a fiercely competitive $20 billion infant formula market.

“By bringing the Dumex and Yashili brands closer together, the operation will build a strong local infant milk formula (IMF) brand platform,” Danone said in a statement on Wednesday, confirming completion of the deal.

Danone said in July it was planning to sell its flagship Dumex infant formula unit in China, which has been hit by food scares, taking a 398 million euros ($437 million) impairment charge.

Dumex China saw its net sales plummet to 1.3 billion yuan ($203.2 million) in 2013 from 5.7 billion yuan ($890.8 million) in 2012, after a food safety scare in 2013 hit the brand’s reputation with consumers. The scare, linked to New Zealand supplier Fonterra, was later shown to be unfounded.

Mengniu owns just over 51 percent of Yashili, while Danone holds a 25 percent stake.

The deal is subject to approval from authorities and Yashili’s shareholders. ($1 = 0.9410 euros) ($1 = 6.3985 Chinese yuan renminbi) (Reporting by Donny Kwok and Adam Jourdan; Editing by Stephen Coates)

Related News

May 8, 2021

European S3FOOD: 14 new projects receive grants to digitally innovate food production

Food & Drink

This month, the second S3FOOD voucher call selected 14 innovative SME-driven projects all across Europe. These projects will receive funding to develop and adopt innovative digital solutions.

May 8, 2021

Kerry’s global taste reports pins nostalgia, exploration and health as key trends

Food & Drink

The Global Taste Trends report maps out the key taste linked to trends across the US and Canada, Mexico, Latin America, Europe and the Asia Pacific Middle East and Africa highlighting how they vary and travel across these regions.

May 8, 2021

Cargill expands gourmet chocolate offerings with Leman Decoration acquisition

Food & Drink

The acquisition significantly broadens Cargill’s offerings in the decorations space, enabling the company’s cocoa and chocolate business to better serve gourmet customers in Europe and worldwide.

Send this to a friend