Danone agrees to sell remaining minority investments in Mengniu partnerships and to acquire Dumex
Press release – Paris, May 6, 2022
Danone agrees to sell remaining minority
investments in Mengniu partnerships and to acquire Dumex
Danone announces today that it agreed to sell to Mengniu the 25% stake the company holds in Yashili and the 20% stake it holds in the Inner Mongolia Dairy Joint Venture. In parallel, Danone will acquire from Yashili 100% of Dumex Baby Food Co Ltd, a Chinese manufacturer of Infant Milk Formula products.
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. Further announcement(s) on the satisfaction or, where applicable, waiver of conditions of the proposed transactions will be made in accordance with the Listing Rules and the Takeovers Code of Hong Kong.
The completion of these transactions will lead to the conclusion of the partnership Danone held with Mengniu over the last few years, following the disposal of Danone’s 9.8% minority stake in Mengniu in 2021.
China remains highly strategic for Danone, and today’s announcement will notably allow the company to further expand its ability to locally manufacture Infant Milk Formula products. In line with Danone’s capital allocation priorities, the expected proceeds will be dedicated to further deleveraging the company.
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FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”, “foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”, “will”, “could”, “predict”, “continue”, “convinced” and “confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, predictions of future activities, operations, direction, performance and results of Danone.
Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the “Risk Factor” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).
Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.
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